Michael,
Having ongoing contact with someone whose stability is questionable can be a frightening experience. It sounds as though you have been doing an admirable job of trying to keep the student from over-reacting It would certainly seem to be appropriate for you to ask for some support from the institution in knowing how best to respond to the student. It is likely that if he is responding this way to YOU, he is demonstrating similar behavior in his actions throughout the institution. Look for help!
Dr. Jane Jarrow