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Never, ever pay for an internship

If you haven’t heard about it already from the Wall Street Journal, there is a disturbing new trend in organizations offering internships for hundreds, and sometimes thousands, of dollars. Yes, that’s right—students (or more likely, their parents) are paying companies for the privilege of interning at their organizations.

I find this flawed on so many levels, it’s hard to know where to begin. It’s one thing to have an unpaid internship, which I’ve already encouraged you to consider as long as you have enough time left during the week for a paying gig. But, it’s an entirely different matter to pay University of Dreams $5,000 to $9,000 for an eight-week internship.
 
Internships, which ultimately lead to jobs because of the experience you’ve gained and the networking contacts you’ve made, should not only be offered to the elite. It’s bad enough these practices happen at colleges and universities around the country, but now internships, too?
 
It’s hard to say how wide-spread this trend actually is, although the Wall Street Journal also reports there are “consulting companies” jumping onboard this train, like Fast Track Internships where you can pay again hundreds, and sometimes thousands, of dollars for “guaranteed internship offers.”
 
In a recent interview with Patrice J. Lee, media relations manager at The Fund for American Studies, she offered other options for students who want great experiences but may not be able to afford shelling out that kind of money.
 
1. Referrals are sometimes better than cold calls. With demand for internships at a premium, sending out your résumé alone may not be enough. That’s where networking helps, but if you have no network, an established internship program can help. They have relationships with companies/organizations that have sponsored their interns before and will be more accepting of a referred candidate then a complete stranger. For example, at The Fund for American Studies, we have access to hundreds of high-demand internship sites around Washington, DC, like the State Department, Chamber of Commerce, Washington Post, Fox News, General Electric, Time Magazine and USA Today.
 
2. Know the difference between paying for an internship and paying for an educational program. Students should never have to pay for an internship. When applying to an educational internship program, costs are usually for tuition and housing. At The Fund for American Studies, our program fees cover academic credits through Georgetown University, housing and program activities. We never charge to place a student at an internship site. (Note: To add to Lee’s statement, this is akin to doing an internship for credit at your school, where you have to pay the tuition costs but receive up to three credit hours toward your degree.)
 
3. Look for scholarships. Scholarships exist that can help fund your summer/semester working. At The Fund for American Studies, we offer $1,000,000 in scholarships each year (with average awards of $2,100 during the summer and $4,500 during semesters) to help defray the costs of our programs.
 
4. Apply your financial aid. Look for programs at universities or legitimate educational organizations that allow you to earn credit hours while interning. At The Fund for American Studies, we establish consortium agreements with students’ colleges, and the students can then utilize their financial aid to pay for our academic internship program.
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By

Entry Level Careers Examiner

Heather R. Huhman is a career expert and founder and president of Come Recommended, a career and workplace education and consulting firm...

Comments

  • Margaret Johnson 2 years ago
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    What I need to know is what is the legal definition of an intern? I live in WA state. I know the definition for full time and 1099. I can't find the definition for intern. What is allowed, not allowed by law? How are interns categorized if they DO get a stipend (assuming that is allowed)?

    thank you.

  • Lauren Berger 2 years ago
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    Hi Heather,

    I felt the need to comment on your blog because I just signed on to be the spokesperson for University of Dreams. I wanted to have the opportunity to explain why I would sign on to a program where students PAY for internships.

    I graduated college in 2006 and I interned in Los Angeles for two summers while college (college in Florida). I found my internships on my own and went by myself, I didn't go through any type of program. When coming to Los Angeles from across the country there are a few challenges:

    1. Living
    I had to look on Craigslist to find a sublet for the 2 months I was in Los Angeles. I was lucky to find a decent person to live with. But I did have to send a down payment to someone I didn't know and my parents were worried about safety because I was going to an unfamiliar place. There was no security of any kind at the apartment. I also had to furnish the place (simple bed, dresser, etc). After the down payment, rent, furnishing - this cost over $2,000. The second year in Los Angeles, I lived at Oakwood Corporate Housing where many interns live. I believe the cost was close to $2100 per month.

    2. Food. As an intern, I had a crazy schedule and ate most of my meals out and on-the-go. I spent a majority of my money saved for the summer on food alone.

    3. Social Activities. With the friends I was able to make, they constantly wanted to do things. When you are under 21, it's not easy to find tons of things to do. Even going to a movie costs plenty in Los Angeles. So again, I spent money on entertainment for the summer.

    4. Making Friends. Coming by myself from Florida, it's not so easy to make friends. When you aren't 21 and can't just go to a bar and meet people, its difficult. I happen to have an outgoing personality, so I did meet people, but even at my internships there were only 2 other students sometimes.

    5. Transportation. I had to ship my car out from Florida two years in a row. I think that cost approx $1,000 each way. In Los Angeles, its extremely hard to get around without a car.

    The total amount of money I spent on each summer in Los Angeles far exceeds the amount of money that U of Dreams charges. I would have SAVED money if I went with University of Dreams.
    University of Dreams offers an all-inclusive internship experience. Students aren't paying for internship, they are paying for their food, transportation to and from their internships, housing, social excursions on the weekends. They get to meet 200 other interns their age at these programs. I think that opportunity is priceless and if I could go back in time and do it all over again, I would definitly participate in University of Dreams - and, I would have SAVED money.

    Thats all :)

    Love your blogs !

    Best,
    Lauren Berger

    Follow me on Twitter @internqueen

  • Lisa 2 years ago
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    Heather,

    Although I understand your points I don't think it is a fair statement to say you should NEVER pay for an internship.

    As a Canadian it was a challenge to get an internship in Los Angeles. I am currently enrolled in the University of Dreams program and I couldn't be more excited.

    Although I'm paying to LIVE in Los Angeles, I am not paying the company I am interning at. The price covers the cost of my rent, transportation, food and weekend activities as well as help getting my Visa to work in the States.

    I feel that this is money WELL spent. My passion is in the entertainment industry and doing PR in LA has ALWAYS been a dream of mine.

    After totally the costs of my flights, Visa, rent, food and transportation it came pretty darn close to what I am paying University of Dreams.

    With the cost of University of Dreams comes the comfort of knowing I will get a quality internship in LA. Something I could not 100% say if I were to apply blindly to companies in L.A., as I am not from there and don't know the reputation of PR firms there.

    I also know that I will be living with plenty of other students my own age. If I were to go to L.A. I would be by myself, probably homesick and would not have the support of the U of D staff.

    Overall I personally thank that you should NEVER pay for an internship if it isn't right for YOU.

    I AM paying for my internship but I KNOW that the experience and contacts I make will be PRICELESS in my PR career.

    All The Best!
    -Lisa

  • Joanne 2 years ago
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    I am a graduating senior and even though Lauren makes an interesting point, I will have to agree with Heather. As a college student who has been putting myself through college, the last thing I have is a few thousand dollars sitting around to spend on an internship. I think internships should be earned, not purchased.
    I have a friend who manages an internship program and has a few interns from University of dreams. Although these interns have been just as competent, I feel that they are cheating themselves out of a real life experience by having it so easy. The real world is not always going to be as easy as it is for mom and dad to open their check books.
    I am by no means discrediting these students purely because they can afford such a program, but I believe the wonderful thing about being a student is that it evens the playing field. With companies like University of Dreams, they create more of an unfair advantage. If this persists, how will the students who don't have money find internships?

  • Mike 2 years ago
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    Good points from all.

    I am actually a grad of University of Dreams, and I thought I would clear up some things in regards to Joanne's post.
    First of all, I did earn my internship. I was up against thousands of students for an internship at MSNBC and it was because of my hard work that I landed it. University of Dreams was the mere catalyst that helped me get my "in"....In no way did I "purchase" my internship and those who think that should research what the University of Dreams actually does. They do not get you an internship, they help you. It was my resume, experience and persistence that landed me my internship.
    I also had to work my tail off in order to pay for my experience at University of Dreams, mom and dad didn't open their cheque books. I held two part time jobs on top of being a full time student and having all that to organize just added to my resume and showed top employers how dedicated I am to achieving my goals. I knew how much U of D cost and I worked in order to get accepted.
    This leads me to my next point. Not everyone who applies to U of D is accepted, which adds to my point that these internships are not "purchased". I had a friend who had horrible grades, applied to U of D and was not accepted because of it.
    I disagree that U of D create a n unfair advantage. All of the internships they offer are offered to the general public as well. Anyone can apply to them. U of D simply helps with living arrangements as well as help you build your resume and interview skills, something I think all student would benefit from.

    I encourage all to check out the U of D website before they develop a stereotype about it.

    Thanks guys.
    Cheers!
    Mike

  • Heather Huhman 2 years ago
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    Thanks for all the comments!

    The fact remains that University of Dreams is not an internship program - it's an educational experience. You pay living expenses, tuition and even for "friends and social experiences," as Lauren indicates.

    To quote the University of Dreams Web site, "our internship program provides guaranteed internship placement." This really does create an unfair advantage. In the five internships I had during college, I never paid as much as University of Dreams charges when considering all of my out-of-pocket expenses. Not even close. No one should have to go into debt for an internship - there are certainly ways to land awesome internships without doing so. (Keep reading my column for tips!)

    I'm sticking with my story on this one - students and recent grads should understand the difference between an internship and paying for an educational experience. I liken University of Dreams to studying abroad for a semester rather than an internship program, which would not be a bad thing if that's how they described themselves.

    Again, thank you all for reading and your comments!

    Heather Huhman
    Entry Level Careers Examiner

  • John Sternal 2 years ago
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    To all those who have actually paid for an internship: Why are you so opposed to leveling the playing field? Let's leave it up to the student with the best skills and school credentials to get the internship. Clearly, I'm opposed to having to pay to get an internship. What if your son or daughter couldn't get an internship because they didn't have the money to do so? I'm curious how you'd feel then.

  • Willy Franzen 2 years ago
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    I'm with Heather on this one.

    If I'm an employer and I find out that you got your internship through a "guaranteed placement," I'm going to instantly look at you skeptically. Actually, I'm probably going to toss your resume in the garbage. A big reason that you are doing an internship is to have some work experience to help you get that first job. Do you really want to take an internship that will make employers think less of you? You better be good at keeping secrets so that you don't spill the beans in the interview. In my opinion, paying for an internship sends so many bad signals that I can't overlook it.

    Furthermore, a big part of an internship is learning how to be an adult and start taking care of adult responsibilities. All those things that Lauren mentioned are a big part of having an internship. Paying someone to take care of that stuff might make life easier, but it's not going to prepare you for the real world.

    Paying for an internship does not show initiative. Showing initiative is what gets you jobs.

    I still think that most unpaid internships are unethical, but that's another debate (on which Heather doesn't agree with me).

  • Ben Cao 1 year ago
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  • jjones98 1 year ago
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    There definitely is a difference between just an internship and a full career related experience that includes an internship. Programs like UD have a total package that makes the entire experience (learning and working, networking, etc.) more possible. International programs like india internship, or the one mentioned above and (www.nextstepconnections) add additional components giving participants a chance to live in a foreign country (India or China), meet other students and professionals from around the globe, work on foreign language skills and gain international work experience. It's similar to study abroad in a sense most of the components are taken care of so that the students can land with their feet running. No worrying about finding an internship placement, or housing, or finding people to share the experience and the cultural adapting with.

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