Deferred means that the Admissions Board reviewed his record and did not deem him qualified nor did they reject him. Essentially, they decided they will re-review his record at a later time.
This could be or be due to any number of things. Early in the process, the Board may believe they have insufficient information on the quality of candidates this year and want to see more records before making a decision. At this point (late Nov.) that's probably not the reason, though it could be. More likely, they could be waiting for updated SATs or maybe 7th semester grades. Or there could be other reasons.
To be clear, deferral is not a rejection. The record will be re-reviewed. At that time, the candidate will be deemed qualified or rejected. If rejected, there is still a possibility of NAPS/Foundation.
As an aside, this is one of the reasons USNA typically doesn't comment on a candidate's Board status and why BGOs are told not to provide this information. A status like this exists today but could change any day. Passing on this information creates needless anxiety. But USNA can't control MOC offices. Also, for the above reason, Admissions is unlikely to discuss Board status with candidates.