First off what age/grade is he now? and if hes been playing varsity since 7th grade does that mean hes a Kentrucky boy? And what division is his high school team?
Do contact schools. Especially D2 and D3 schools. Now your first reaction to D2 or D3 would be its not big time, but its a different story for baseball compared to basketball or football. There are a ton of D2 and 3 college players that play pro ball and/or transfer to D1 programs after a year or two. THere are even a lot of community college players that transfer to D1 schools or end up being drafted.
Don't expect a full scholarship, its very rare in baseball. Most scholarship baseball players are on partial scholarships.
this link may help a few of your questions: http://www.varsityedge.com/nei/varsi...and+recruiting
But dont be afraid to contact schools. Send letters, photos, video, grade sheets, ect.