University ‘Co-Op’ Programs Are Becoming More Popular

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WSJ Your Money Briefing 8 min 3 speakers 8 chapters transcribed 2 months ago
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What is the main topic discussed in this episode?

Deel/Ad Reader 0:00
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Mariana (Ariana) Aspuru 0:33
Here's your Money Briefing for Wednesday, August 21st. I'm Arianna Aspuru for The Wall Street Journal, filling in for J.R. Whelan. Universities with co-op programs, where students can get full-time work experience, are becoming more sought after among applicants.

What are university co-op programs and how do they differ from internships?

Mariana (Ariana) Aspuru 0:52
The programs give students the chance to switch between classes and up to 18 months of paid work. And that could lead to a better chance of landing a job after graduation.
Sanvi Bangalore 1:02
You can leverage to get a job with another company, or you could even target the company that you co-opt for and try to get a full-time offer with them. And a lot of times, like, they've already invested six months into you to really work with you and train you, so they have more of an incentive to hire you. We'll talk to Wall Street Journal reporter Sanvi Bangalore after the break.
Deel/Ad Reader 1:29
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How long are co-ops and what kind of pay and credit do students receive?

Deel/Ad Reader 1:37
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Mariana (Ariana) Aspuru 2:06
In a tight labor market, colleges that offer programs for students to get work experience beyond just internships have become more appealing to applicants. Wall Street Journal reporter Sanvi Bangalore joins me to discuss. Sanvi, how do programs like these work?
Sanvi Bangalore 2:22
Co-ops are six months long, which differentiates them from the typical like 10 to 12 week internship because they really allow students to work full time, oftentimes for credit and for pay, and really allow them to get fully immersed in their field and do work that normal full time employees would do.

Why are students choosing co-op programs when selecting a college?

Sanvi Bangalore 2:40
How different is this from an internship? Internships are usually like 10 to 12 weeks. Oftentimes they are part time in addition to schoolwork during a semester or they're in the summer, whereas co-ops are six months long and students work full-time, so usually like 40-hour work weeks. You get to be a lot more immersed in a co-op and really have that be your main focus. And they're paid pretty well. They can make up to $50 an hour in tech, very comparable to a full-time job salary that you would earn and on top of it they don't have to pay tuition that semester and then they also make a good amount of money at their co-op so they have more money to spend on the weekends and they can also help contribute to their rent or their tuition and other things so the pay is definitely a huge plus.
Mariana (Ariana) Aspuru 3:28
Why are students considering this work experience when choosing their school?
Sanvi Bangalore 3:31
It's becoming more well known that employers are expecting real work experience on resumes from college students when they're looking to hire people. And having real deliverables that you've worked on and real work experience to talk about in your interviews and on your resume really stands out because employers want to hire students that are employment ready. The bar is just a lot higher now to get hired out of school than it used to be.
Mariana (Ariana) Aspuru 3:59
The schools that you highlight in the story are Northeastern University and Drexel University. What are some of the results that they've seen with their students?

What outcomes have Northeastern and Drexel seen from their co-op programs?

Sanvi Bangalore 4:07
The vast majority of students are employed nine months after graduation. Their rates are a lot higher than the national average. A lot of times they get hired out of their co-ops, which is a huge draw.
Mariana (Ariana) Aspuru 4:19
So it's like a bridge to having that full-time job afterwards?
Sanvi Bangalore 4:22
Yes, it could be a bridge in different ways. You have the work experience from your co-ops to highlight on your resume, which you can leverage to get a job with another company, or you could even target the company that you co-opt for and try to get a full-time offer with them.

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