This is literally how all of these cases work. You pay back the full amount of the impermissible benefits, otherwise you are a professional basketball player playing in an amateur league. The money goes to charity because the NCAA doesn't fine for profit, it's to make his amateur status whole and keep a level playing field.
Now it's a personal matter between him and his parents. They got the money, they should pay it back. But ultimately it's his responsibility. It's not always fair that when you are a minor your parents can influence your life, but it's the way the world works for everyone. He was living/moving with them. He got the benefit of the money, which again, was only paid for basketball reasons. He has to pay it back.
If he/they can't pay, then he's not eligible to play in the NCAA. He can go play somewhere else with other professionals. He can go take that G-League 100k salary thing, Australia, etc.