Locked out of old account.

Description

To make a long story short, I sent my room-mate money for rent to an account he no longer has access to. He registered this account with a school email that has since been closed by the school and he does not remember the password. The money says it is in the account but he has no access to it or way to recover it. He has a new PayPal now with his updated information. Is there anyway I can have the balance of his inactive account sent to his new account? The payment has already completed to the inactive account and I am at a loss. This is causing a lot of frustration and stress, what could I possibly do? Is the money gone forever now?