Nathan,
I don't know exactly where your student is at this point.
If he were my student I'd probably be thinking (if you haven't already done so) do some power on and power off stalls, unusual attitudes, and maybe some limited aerobatics like loops and aileron rolls to get him to free up his thumbs. I'd start with the aerobatics to get him comfortable with the seeing the airplane in different attitudes first before doing the stalls and unusual attitudes. In doing these maneuvers it will force him to commit to using the controls. Confidence maneuvers can do a lot to help take away some of the fears many students have. He should find doing loops and rolls fun and be more aggressive in their accomplishment.
The reason I say it will help confidence is that in Air Force Pilot training many of us students (T-37 phase) after having been demonstrated aerobatic maneuvers were told to go out into the training area to practice those maneuvers solo. Many of us (after comparing notes) went on area border patrol, until we got enough nerve to do our first solo roll, then a loop and so forth quickly realizing WOW this fun!!!! By the end of my flight I was almost ripping the wings of the bird. It sure put a tiger in our tank after a few rides.