Colleges Offer Students Work Programs Ahead of Graduation

Summary

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WSJ Your Money Briefing | Colleges Offer Students Work Programs Ahead of Graduation

Date: February 10, 2020
Host: J.R. Whalen
Guest: Cheryl Winokur Monk, Wall Street Journal Contributor

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Episode Overview

This episode explores college-sponsored cooperative education (co-op) programs that allow students to work in their field of study while still enrolled in school. The discussion focuses on how these programs offer students practical experience, financial benefits, and an edge in post-graduation job searches—while also acknowledging the potential drawbacks and financial aid implications.

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Key Discussion Points & Insights

What Are College Co-op Programs?

• Co-op programs let students alternate between periods of full-time work and academic study.
• Programs are typically longer and more immersive than traditional internships, often lasting anywhere from three to six months.
• Co-op participation can sometimes extend a student's time in college, potentially taking them from four to five years to graduate.
  • Cheryl Winokur Monk:

    "If you're talking a job that's three to six months and you can do it in some places... you can really get a plethora of experience that you just can't get in another way." (01:33)

How Co-ops Work

• Policies vary widely by school and employer:
  • Some allow students to take a class or two while working, but generally not a full course load. (01:57)
  • Tuition policies differ: in some cases, students don’t pay tuition while on co-op, potentially offsetting the cost of a longer enrollment period. (02:21)
  • The terms "co-op" and "internship" can be used interchangeably, so students need to clarify the specifics of each opportunity. (02:47)

Financial Aspects

• Co-ops are often paid, providing full-time work experience with earnings that can be applied to tuition or living expenses. (03:19)
• Students must balance the potential for extra living costs (e.g., moving off-campus, wardrobe for work, possibly relocating for overseas placement) against their earnings:
  • Cheryl Winokur Monk:

    "You wear jeans and a T-shirt all the time at college... but you have to dress more formally, so you may need a new wardrobe." (05:05)

• Financial aid implications:
  • Earnings from co-ops are not directly counted as income for financial aid, but leftover savings are considered student assets, potentially impacting future aid eligibility. (05:33)
  • Scholarships may or may not be affected, and students should ask their particular scholarship providers. (06:08)

Career Outcomes & Program Scope

• Co-op programs can give students a significant advantage in the job market by offering real-world experience and direct access to potential employers:
  • Many students secure job offers from their co-op employers after graduation, especially if it's a "mutual fit." (03:47)
• Since only about 10% of students participate in these programs, those who do tend to stand out to employers. (03:47)
• Availability varies:
  • Some schools offer co-ops only to specific majors (e.g., engineering), and only about 60 schools have formal programs. (04:26)
  • However, other extended internships or less formal work opportunities can be just as beneficial, even if not labeled as "co-ops." (04:58)

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Notable Quotes & Memorable Moments

• On the benefit of multiple rotations:

  "You can do it in some places you can do multiple times. You can really get a plethora of experience..."
  — Cheryl Winokur Monk (01:33)

• On tuition costs and timing:

  "You're not going to actually pay extra for that... some of these schools say you don't have to actually pay tuition costs while you're on the co-op."
  — Cheryl Winokur Monk (02:21)

• On financial aid implications:

  "The income is not counted. However, anything you have left over in your savings account afterwards is counted as a student asset for purposes of financial aid."
  — Cheryl Winokur Monk (05:33)

• On participation rates and job market advantages:

  "It's really something like maybe 10% of students get these kinds of opportunities or take advantage... so you stand out when you do this type of thing."
  — Cheryl Winokur Monk (03:47)

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Timestamps for Key Segments

• Introduction to Co-op Programs & Their Unique Features – 00:38–01:52
• Scheduling, Tuition Policies, and Enrollment Implications – 01:52–02:42
• Compensation and Clarifying Co-op vs. Internship – 02:42–03:19
• Applying Earnings to Tuition & Managing Program Commitments – 03:19–03:41
• Career Benefits and Exclusivity of Programs – 03:41–04:26
• Availability Across Fields and Extended Internship Alternatives – 04:26–04:58
• Real-World Expenses Linked to Co-ops – 04:58–05:29
• Impact on Financial Aid and Scholarships – 05:29–06:18

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Summary

This episode provides a comprehensive look at cooperative education programs for college students, highlighting both the tangible career and financial benefits as well as important considerations like program structure, financial aid, and real-world challenges. By demystifying these programs and emphasizing the necessity of asking the right questions, the episode equips students and families to make more informed decisions about leveraging co-op opportunities.

Transcript

[A]

This episode is brought to you by Charles Schwab. Decisions made in Washington can affect your portfolio every day. Washington Wise from Charles Schwab is an original podcast that unpacks the stories making news in Washington. [e-mail] Washingtonwise.

[B]

Here's your Money briefing. I'm J.R. whalen at the Wall Street Journal in New York. After the pomp and circumstance of college graduation day, when most graduates turn their focus to finding a job, some schools are giving students a head start on their peers by letting them begin working in their field of study while they're taking classes.

[A]

If you're talking a job that's three to six months and you can do it in some places you can do multiple times. You can really get a really a plethora of experience that you just can't get in another way.

[B]

That's Wall Street Journal contributor Cheryl Winaker Monk. She'll explain how these students juggle a job in their studies and and how earnings from job programs could put financial aid in jeopardy. That's next. Some college students looking to enter the workforce can get a leg up before they even graduate. Programs called college sponsored cooperative education or co op programs allow students to alternate between working classes. Wall Street Journal contributor Cheryl Winokur Monk is on the line with us to discuss the pros and cons of these programs. So, Cheryl, the competition for jobs out of college is fierce. How does a co op help students?

[A]

Well, the thing about co ops is that they tend to be longer than maybe an internship or a summer job. And so if you're talking a job that's three to six months and you can do it in some places you can do multiple times. You can really get really a plethora of experience that you just can't get in another way.

[B]

And these job experiences would happen while the student is enrolled at school, right?

[A]

That's correct. Although they may not be taking classes at the time. Some schools allow you to take classes a class or two. There's really the policies depend on the school, but you certainly wouldn't have a full workload while you're doing this co op opportunity.

[B]

Yeah, there are a lot of questions for students to ask here. Like for example, would the co op require them to suspend their studies and it could actually extend the student's enrollment from four to five years in some cases.

[A]

That's true. Although in some cases in some schools you're not going to actually pay extra for that. It's kind of a, I'll call it prorated so that you're Actually not paying more because some of these schools say that you don't have to actually pay tuition costs while you're on the co op. So you have to ask that question to see whether or not staying longer is going to cost you more in the long run.

[B]

And another question to ask would be about the salary paid by the co op experience.

[A]

Typically co ops are paid full time work experience, but it really depends on the school and on the job. Some jobs are going to pay more than others, some people pay less. Obviously it really depends. And the other thing is, even sometimes when a school calls it a co op, it may be more like an internship or a school calls it an internship, it may be more like a co op. The terms are used somewhat interchangeably. Sometimes the students really, really just need to know to ask questions about what the specific opportunity is.

[B]

Now the money they earn from these co op jobs, they can apply those earnings to their tuition.

[A]

Absolutely. And that's a big win for these students as well.

[B]

How does a student in the college sort out the amount of time that will be spent?

[A]

Most of them have. These have programs that are pretty well defined and I guess it would depend on the employer. Each employer in each school is going to have different programs to define how these co ops work. It's going to be very school specific and even employer specific.

[B]

And have students been able to turn the co op experience into success in their field? Is there a track record here?

[A]

Many students have. I talked to a couple people who said that they really recommend it is because it gets you a foot in the door to work with these companies. In cases where it's a mutual fit, then there could be opportunities for the student to extend that to a full time role after they graduate. Another benefit to students is there's only a small number of students doing this. It's really something like maybe 10% of students get these kinds of opportunities or take advantage of these kinds of opportunities. And so with such a small pool, really, whatever, really you stand out when you do this type of thing.

[B]

Is there a broad spectrum of experience here? Almost any field of study would have some sort of work tied to it through a co op.

[A]

It depends on the school. Some schools only offer it to say engineering students have to check out the schools. About 60 schools have a formal cooperative education or co op program. But it really depends on the school what they offer. So if you're interested in a particular school, you should certainly find out how that program works at that school. The other thing to remember is that schools sometimes offer programs that aren't really formal co ops, but they still have maybe a longer internship or things like that. And it's still any kind of experience a student can get while in school is beneficial.

[B]

Now, this is real world work experience, no doubt, but the student might also face some real world expenses also tied to these jobs.

[A]

That's true. Of course, that has to be balanced with the idea that they are making money at the job. But there could be extra expenses if you decide to live off campus, for example, or if some co ops are actually overseas. And so there might be additional expenses in that case. And the other thing is you wear jeans and a T shirt all the time at college and during your classes, but you have to dress more formally so you may need a new wardrobe, expenses like that.

[B]

Would earnings from a co op program affect a student's eligibility for financial aid?

[A]

That's a little bit tricky. The earnings, the income is not counted. However, if you anything that you have left over in your savings account afterwards is counted as a student asset. So the income doesn't count, but it's counted as a student asset for purposes of financial aid. But the student really has to balance that with the idea that they really are making what could be a substantial amount of money. So even if it does affect aid because they still have the money in their account, for example, really you need to weigh that against the idea that they really are making a significant amount of money that could actually help them.

[B]

And how about scholarships? Is there any kind of an impact there?

[A]

So that's going to be a specific question for a scholarship provider. There could be, there may not. Be. So if a student is getting a scholarship, they should check with the scholarship provider to see what, if any, effect it will have.

[B]

All right. That's Wall Street Journal contributor Cheryl Winiker, Monk on the line with us. Cheryl, thanks for coming on the show.

[A]

Thanks for having me.

[B]

And that's your money briefing. I'm JR Whalen in New York for the Wall Street Journal.

[A]

This episode is brought to you by Charles Schwab. Decisions made in Washington can affect your portfolio every day. Washington Wise from Charles Schwab is an original podcast that unpacks the stories making news in Washington. [e-mail] WashingtonWise.