Retake, none of these are great options. Vandy/UT at sticker are not good for your preferred regions and are too much debt. You should be getting a bunch more from IU (full ride).
I took the 5,000 a year as saying thats how much it would cost him in tuition. I can’t imagine someone who got into Vandy/UT only being offered 5-8k at the other schools.