I'm not sure where it indicates with 100% certainty that he wants to be friends with benefits with you. You should just take things to the next level up from friendship with him and start being more romantic with him taking things one day at a time. You've had a decent discussion with him about things and you both seem to be on the same page. Thing to do now is tell him that you'd like to persue things with him without hanging 'sex' in the room like a pink elephant and that if it gets to the point of going all the way, then at least you'll both know that you valued each other enough to feel happy and comfortable it going all the way.
At least if he is showing you in actions that he values you, you won't have any regrets for having had sex with him should the relationship not become something long term... There's no guarantees in life so you have to put your trust in him once he's shown you he's genuine.
Keep in mind if the relationship has a chance of proceeding past your college years. If it doesn't then it will be fun while it lasts but there's no future if you're both going to go to different places in the globe to live once your schooling is done.
“The willingness to accept responsibility for one’s own life is the source from which self-respect springs.” ~Joan Didion