College Co-op Programs

"The right work experience can give graduates a boost, but there are lots of questions to ask."

Cheryl Winokur Munk, The Wall Street Journal, 2/10/20.

"About 60 schools offer a formal cooperative-education, or co-op, program, where students generally alternate periods of work and classes. These schools include Drexel University in Philadelphia, Northeastern University in Boston and the University of Cincinnati." Other colleges offer formal career-related internship or apprenticeship programs. 

Since only 10% of college students graduate with formal work experience, it can give them an advantage in finding employment.

"Co-op programs and other work opportunities vary from one institution to another, so students need to understand the particulars of each program they consider. To help them make informed choices, students should consider these questions:"

What is the nature of the program?

"In co-op programs, students usually spend at least one period of several months working, during which time they scale back or suspend their studies. They may or may not have to pay tuition while they’re working, depending on the program." How many opportunities are offered? When spending time away from classes for co-op, students may need an extra year to graduate. How does this affect tuition costs? 

Who are "typical employers, what types of job opportunities exist, and whether they are for pay, school credit or some combination of the two."

"Drexel University, for instance, generally offers two co-op programs for undergraduates, one with three co-ops over five years, or a four-year program with one co-op—both for the same tuition. Generally, students are on each co-op for six months, alternating with six months of classroom study. They don’t pay tuition while on a co-op, but they do pay certain university fees. Typically a co-op is a paid, full-time work experience for which students also receive college credit."  

"Endicott College in Beverly, Mass., requires all students to complete two 120-hour internships, one during freshman year and one during sophomore year. Students are also required during junior or senior year to complete a semester long for-credit internship. For this, students are required to work four days a week and attend an on-campus seminar once a week. They earn a total of 12 credits for successfully completing the work and seminar components, and they pay normal semester tuition charges. There is no requirement for students to be paid, but they can be."

Taxes: "pay from a co-op is subject to income taxes." "Co-op earnings are excluded from the federal aid determination process—except for any portion unspent at the time the Free Application for Federal Student Aid, or Fafsa, is filed, which will be counted as student assets. Students might consider using at least a portion of co-op earnings to fund a Roth IRA, since retirement assets aren’t considered for federal aid purposes."