The Case for Higher-Ed “Co-Op” Programs

Like many students, I waited months after graduation before receiving a job offer. Why this delay for many of the nation’s recent graduates? The answer, in part, is that most “entry-level” positions now require candidates to have one to three years of experience. In fact, roughly 61 percent of entry-level job postings now demand at least three years.

How is a fresh graduate supposed to gain experience without years-long internships, which many students don’t pursue? A potential solution to this problem is for universities to adopt the “co-op” or cooperative model, in which students alternate between working for a company and attending classes.

Through the co-op model, students spend some semesters working for a company and others in class. Through the co-op model, students are given the opportunity to spend some semesters working for a company and others in class. A student applies to a co-op program at a large, respected corporation, such as BlackRock, JP Morgan, Exelon, Comcast, and others, and then interviews as if he or she were applying for a real job or internship. Once accepted, he or she begins working at that company at a predetermined time in the academic year.

This model helps students build a network of professional contacts who can help them find future opportunities. This model not only provides students with valuable work experience before graduation, but it also helps them build a network of professional contacts who can help them find future opportunities.

Let’s consider two of the schools in the top 100 according to U.S. News: Drexel University in Philadelphia, ranked 86th overall, and North Carolina State University, ranked 58th. As of this writing, Drexel, at which more than 94 percent of undergraduates participate in a co-op program, places 97 percent of its business students in jobs (or graduate school) within the first year after graduation. Sixty-one percent of all graduates have at least one job offer upon graduation. NC State, meanwhile, boasting the largest co-op program in North Carolina, reports that 83 percent of students receive job offers with six months of graduation.

Elsewhere, Northeastern University, whose website mentions 3,800-plus co-op employer partners, places 93 percent of graduates in jobs or professional school within nine months of awarding them diplomas. By comparison, a university in the same region without a formal co-op model, Holy Cross, places only 89 percent, a figure that includes not only full-time jobs and graduate school but “service work” or “fellowships,” as well.

According to CollegeScorecard.gov, the average salary for a Drexel graduate is roughly $85,000, while NC State grads earn about $69,000. Both schools see substantial earnings above the four-year-schools average of $54,000. Northeastern University’s graduates, meanwhile, earn about $93,000 on average.

Co-op schools excel where return-on-investment is concerned, too. Drexel students’ ROI is about $508,000, while Drexel’s Philadelphia counterpart Temple, which offers a far less developed co-op program, has an ROI of about $134,000. Northeastern students’ ROI is about $657,000, and NC State students’ ROI is $281,000. While these data sets are small, it is not crazy to imagine that fuller résumés and more experienced students secure higher-paying jobs right out of school.

Currently, several North Carolina universities offer a co-op program. NC State partners with 600 companies or agencies to provide students with access to real, hands-on experience. UNC Charlotte offers a cooperative-education program, as do North Carolina A&T and East Carolina University.

Professional associations generally have a positive view of co-op programs. For example, the National Association of Colleges and Employers (NACE) acknowledged in its most recent report that “employers recognize the importance of … co-op programs, which offer efficient means of identifying and connecting with potential employees.” Perhaps just as importantly, students seem to enjoy the co-op model. Drexel University retains about 90 percent of its first-year students, meaning a vast majority of Drexel freshmen are satisfied with their education. Likewise, Northeastern University reports about a 97-percent freshman retention rate, meaning nearly all of its students are satisfied. As previously stated, Philadelphia’s Temple University offers far less developed co-op experiences. Temple’s freshman retention rate is only 85 percent, five percentage points lower than Drexel’s.

Ninety-six percent of Drexel alumni report being happy with their job. As for the years after graduation, 96 percent of Drexel alumni report being happy with their job. The authors of this article theorize that Drexel students, having worked at two or three different companies with differing roles as part of their education, know what firms and tasks best suit them and thus apply to post-college jobs wisely. The coauthor of this piece is a current student at Drexel University and states that she has enjoyed getting to experience working for different companies and learning new skills. She views this experience as useful industry exposure and a great way to make contacts and network efficiently. She states that, at her time at Exelon specifically, she got to see whether the utility industry was something she would want to pursue after college.

Companies also benefit by gaining access to skilled students who contribute fresh ideas. While most schools do not yet embrace the co-op model, the data show that it offers considerable benefits for students. It enhances students’ chances of employment post-graduation, as candidates with real-world experience are often more attractive to employers. Additionally, co-op programs provide financial advantages, as students often earn income during their placements, helping to offset tuition costs and reduce debt. Furthermore, the connections students build during their co-op placements frequently lead to full-time job offers, giving them a distinct advantage over peers from schools without such programs.

Companies also benefit from co-op partnerships by gaining access to skilled students who contribute fresh ideas and provide a pipeline of future talent. Ultimately, the co-op model not only helps students secure jobs faster, but it also prepares them for long-term success by offering a valuable professional network, hands-on experience, and increased financial stability. For students pursuing careers in business, engineering, healthcare, and beyond, the co-op model stands out as a proven path to success.

Braden Colegrove is a business analyst at PECO in Philadelphia. He is a graduate of Ohio University, where he studied economics, and is currently pursuing an MBA from Liberty University. Chloe Nguyen is an undergraduate studying finance and business analytics at Drexel University.