Your biggest concern may be concentricity. If the bearing fit is gone, that could be a problem. Belzona is a great epoxy. If you can use the old bearing on the shaft, put the belzona in the housing. Coat the OD of the bearing with a LPS-3 or equivalent coating.
Assemble the sander, let the epoxy set. The epoxy will not adhere to the bearing, and it will give you a good bearing fit with no machining required. Just a suggestion, if it can apply to your fix. We have used this method for years on horizontal split case pumps with
good results. I hope this will help.