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I agree with your decision. Internships are a valuable part of your education. If the commute is doable, it's best to go with the one will further your education the most. Sounds like Job 2's advantages are all perks, not anything fundamentally valuable.
Plus, the Job 1 interviewers were totally upfront with you about the job, as verified by your later research. Believe me, that's a good sign in an employer, even for an internship.
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