The Internship Con

College students around the country are now anxiously awaiting the results of their applications for summer internships. Once a rare added bonus for students, internships have become a standard component of the college experience. And most college students would attest that the need to find substantive summer work each year is crucial.
 
Employers recognize their importance, too. In a representative survey, Michigan State University researchers found that 50 percent of new college graduate hires in 2007 had previously completed internship experiences at the firm at which they were hired. The increasingly competitive labor market makes previous work experience in the form of internships all the more valuable; the National Association of Colleges and Employers survey for the class of 2009 found that only 14 percent of graduates without previous internship experiences had secured employment by April, compared to 23 percent of graduates with at least one internship.
 
In spite of their value, the choice to take an internship is often restricted by a student’s financial resources. Although for-profit firms are legally required to pay their interns, non-profit firms and government agencies are not subject to this restriction (interns are technically considered to be donating their time). So, for example, a student seeking an internship in Washington, D.C., a city known for attracting high-achieving college students, will find it difficult to obtain a paying internship at the White House, with Congress, or at a policy and research organization.
 
Not only does this entail three months of forgone wages, but students must also pay for travel, housing and other living expenses. For a student of modest means, the price tag is often too great, particularly since the most rewarding internships are often in expensive cities. Moreover, students from lower income families are much more likely to have higher levels of student debt, making it even harder to afford a summer without pay. In Washington, D.C., the cost of an internship could conservatively total $4,050, excluding travel—far out of reach for any student in poverty.
 
Non-profit organizations and governmental agencies often justify having unpaid internships by assisting students to secure school credit (thereby offsetting tuition). In practice, however, this is often not an even exchange. Because students are typically not enrolled full-time during their internship, they cannot receive any financial aid. And while they may be receiving class credit, unpaid interns must still pay for their living expenses. Moreover, some universities require that students pay a fee or percentage of tuition to remain enrolled if they are not on campus and receiving academic credit. Lastly, most universities set limits to the amount of credit that students may claim from internships. A student with a semester internship may not be able to receive a full semester’s coursework, so the credit received from an internship may not actually be all that useful in replacing other coursework.
 
In short, the internship pipeline for college students is broken. These valuable opportunities for career training and advancement are available only to the students who can afford them. To make sure college continues to be a valuable investment for all students, regardless of income, the government ought to take action to either end unpaid internships, or ensure that internships are available to all qualified students.
 
(Image by kit; C.C. 2.0)
 
If you enjoyed this piece about the need to change the internship system, check out this post on deficit-funded public investment.