User blog comment:Kilo6Fox/Friend's pawn on my PSN Friend list not showing as free?/@comment-24458380-20150327043343

It sounds as if you haven't accepted his friend request. If I understand correctly, your friend sent you a friend request, but you have yet to "accept". Once you "accept" his friend request, your pawn should be free for him to hire (no Rift Crystal cost), regardless of any level disparity.