The Los Angeles Police Department said Ivan Gallegos, 19, stabbed Xavier Cerf, 27, after he saw him breaking into his car in the rear parking lot of his fraternity's house.
Cerf allegedly told the student he had a gun, resulting in the student stabbing him, LAPD Interim Chief Dominic Choi told the Police Commission Tuesday.
Gallegos, a resident of Los Angeles, was identified as the suspect and has since been booked on suspicion of murder, but the district attorney's office has not formally charged him.
Meanwhile, he's being held on $2 million bail.
In an interview with Eyewitness News, a woman who manages the Delta Tau Delta fraternity said Gallegos is a USC student and member of the fraternity.
Last month, USC's Annenberg Media published a profile of Gallegos describing him as an up-and-coming musical artist who is attending the Marshall School of Business.