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Indeed, this is a widely reported side effect of Saw Palmetto usage. In fact, one expert notes an unusual property of Saw Palmetto: it promotes hair growth on the scalp but reduces it on the face.  So in all likelihood his loss of facial hair growth is probably due to the Saw Palmetto but I certainly cannot "prove it" with a study.
CAUTION: Some of you may wonder why a young guy would take Saw Palmetto in the first place, because they rarely have hair loss or enlarged prostate? The answer is often steroid use. Some of the steroids will raise DHT levels and young guys will take Saw Palmetto for preventative measures. (They will also often take estrogen blockers as well.)
1) INTERNATIONAL UROLOGY AND NEPHROLOGY, 33(2):217-225, "Randomized trial of a combination of natural products (cernitin, saw palmetto, B-sitosterol, vitamin E) on symptoms of benign prostatic hyperplasia (BPH)"
2) Journal of Clinical Endocrinology & Metabolism, 76:524-528, "The androgen control of sebum production. Studies of subjects with dihydrotestosterone deficiency and complete androgen insensitivity"
3) British Journal of Dermatology, Nov 1982, 107(5):559-564, "Relationship between plasma testosterone and dihydrotestosterone concentrations and male facial hair growth"
5) The Journal of Alternative and Complementary Medicine, April 2002, 8(2):143-152, "A Randomized, Double-Blind, Placebo-Controlled Trial to Determine the Effectiveness of Botanically Derived Inhibitors of 5-?-Reductase in the Treatment of Androgenetic Alopecia"
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