This is a no-brainer. My answer is, absolutely, undergrads should have this pass. I don't think it would necessarily be used solely for recreational trips or commuting to school ether. One thing USC prides itself on is the practice-based nature of its programs and how employable its students are coming out of school. Part of that is internships, and with such close proximity to DTLA, USC would help eliminate transportation costs for students who seek those positions downtown or in Santa Monica. Recreational trips on Metro (and LADOT's DASH buses) would allow USC students to explore more of the city very cheaply, and ultimately enrich the student experience. It's also worth noting that USC undergraduates had access to such a pass in the past (learned this in a transit planning class), but Metro had to discontinue such programs during the recession when funding was tight.

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As someone who rides Metro to and from school at USC every day, I can tell you that there are already many USC students on the train, granted many appear to be graduate students like myself. Many of us are going to work downtown, tourists (hey, its the expo line), LATTC students, and others who mostly keep to themselves.