Students interested in gaining work experience during college that will give them a leg up after graduation might consider a school that offers a career-related work program such as a co-op. But which one?
About 60 schools offer a formal cooperative-education, or co-op, program, where students generally alternate periods of work and classes, says Paul Hill, co-founder of Educate to Career, a provider of college and career planning information. These schools include Drexel University in Philadelphia, Northeastern University in Boston and the University of Cincinnati. Beyond that, a number of schools offer formal career-related internship or apprenticeship programs.
The advantages of relevant work
experience are heightened by the
fact that only about 10% of
undergraduate students graduate
with it, according to Mr. Hill. That
means those students stand out
in this way in comparison with
most of their peers in the job
market. They “are employed much
more readily when they get out of
college. They have higher starting
salaries and they have higher salaries
five years after graduation,” Mr. Hill says.
There can be downsides, however, including costs beyond the usual college expenses in some cases. And this isn’t a one-size-fits-all proposition. 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 general, in a college-sponsored work program students get a job related to their degree, through their school—in many cases (but not always) earning income that can help them defray the cost of their education. 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.
One important consideration is how many work periods, or co-ops, a student can participate in, and over what time period. Some schools, for example, offer students the opportunity to do multiple co-ops, which sometimes means a student will graduate in five years instead of four. So ask whether the tuition for a five-year program is the same as it is for a four, says Peter Tilles, managing partner of Princeton College Consulting in Princeton, N.J. (unrelated to the university).
Students should also ask whether the program requires them to leave school for a semester and work full time, whether part-time options exist, and whether they can take classes while on a full-time co-op, Mr. Tilles says. They should also inquire about the typical employers, what types of job opportunities exist, and whether they are for pay, school credit or some combination of the two. It’s also important to understand whether the co-op is available only to students in certain majors or departments. Students who are interested in international work opportunities should inquire to see if those exist.
Of course, students don’t have to limit themselves to a traditional co-op, says Mr. Hill. Some schools offer, and in some cases require students to participate in, other types of work programs, such as internships or apprenticeships, which can also offer career-related experience. For these programs, students should ask the same types of questions they would when evaluating a traditional co-op opportunity.
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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. For most majors at Drexel, cooperative education is a degree requirement. Students are allowed to take a class while participating in a co-op, though certain restrictions apply.
The ability to take a class while working can be important. Certain courses may only be offered during certain semesters, or a student may want to get ahead on credits or take a particular class when there’s no other schoolwork.
At Elon University in Elon, N.C., some students may have a major that requires a for-credit internship. Beyond that, the school also offers a co-op program, which is a regular for-credit course, with a letter grade. In addition to their work, students must complete academic assignments that relate to their job. The co-ops are usually for pay and can be part time or full time, and students can take other classes at the same time.
For one example of a work program that isn’t a traditional co-op, 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 semesterlong 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.
What are examples of co-ops and other programs?
At some schools, students are responsible for paying tuition while they are participating in a work program. Even if students aren’t assessed tuition while on a co-op, the college might charge other fees, such as room and board, or even a co-op fee. Students might also have other out-of-pocket expenses, if they commute, for instance, need to buy work-appropriate attire or decide to live off-campus while working. Additionally, pay from a co-op is subject to income taxes.
What other costs may be associated with these programs?
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.
Students who plan to do a co-op should contact their school’s financial-aid office for help in determining how their aid could be affected. For instance, colleges may include an allowance for costs associated with a co-op program in the cost of attendance, says Mark Kantrowitz, publisher and vice president of research at Savingforcollege.com, an information and resource site. So, for example, students who have significant expenses associated with the co-op work experience, such as commuting costs, might want to appeal to the college financial-aid office for an adjustment. This usually will result in an increase in loan eligibility, subject to annual and aggregate loan limits, Mr. Kantrowitz says.
Scholarship recipients should also be sure to check with the scholarship provider to understand its policies on co-ops.
Will earnings from a co-op affect financial aid?