It’s no secret that entry-level jobs are declining, significantly affecting the unemployment rate among recent college graduates. Unemployment for this demographic rose to 5.7% at the end of 2025, compared to 4.4% for the overall U.S. population, and the underemployment rate for new graduates is at its highest level since 2020, 42.5%. All of this leaves many wondering whether a college degree is worth it.
For students, one beacon is the prospect of internships, which have long served as a bridge between college and career. One survey found that working during college more than doubles a graduate’s odds of landing a job, and internships and apprenticeships are some of the clearest on-ramps into the workforce.
Yet, of the estimated 8.2 million learners who wanted to intern, only 3.6 million had the opportunity, and just 2.5 million experienced a quality internship.
Internships: An imperfect system
Increasingly, employers and colleges are facing obstacles in executing internships. For employers, one barrier is the financial investment required to expand internships.
They can also face operational challenges: 48% are concerned about finding qualified interns and identifying managers who can provide guidance and supervision.
Similarly, colleges lack financial resources, and securing funding can be complicated and time-consuming, while running a program requires administrative staff that many don’t have. These challenges prevent colleges from either creating a new paid internship program or scaling an existing one, leaving students struggling to find opportunities on their own.
Opportunity for change
If we’re to help college graduates enter the workforce, it’s clear we need a new internship model. By partnering with local workforce boards, policymakers, philanthropists, and third-party organizations, colleges can start, sustain, or expand internships nationwide to increase work-based learning opportunities for a diversity of students.
These intermediaries can serve as a crucial bridge between colleges, students, and employers, and their financial support can increase access to paid opportunities, create high-quality experiences, and scale the program to benefit more students.
As the president and CEO of the American Association of Community Colleges observes about partnering to grow internships, “The diverse assets of private industry and public entities complement one another to produce outcomes with higher impact.”
While every program will differ based on the college’s goals, its student population, and the local resources available, here are some thought-starter ideas to help design a meaningful internship program unique to your student population and community.
- Secure funding: There are various options for internship grants at both the state and federal levels, in addition to non-profit foundations, professional industry associations, local business consortia, and alumni. While employers are often hesitant to invest, they are a critical driver for successfully scaling internship programs. Partnerships can make the prospect more attractive to them because the financial and administrative burden is shared.
- Find employers: Groups such as the Chamber of Commerce and industry associations with local or regional chapters are a great place to start. Reaching out directly to employers is also helpful, but don’t just consider well-funded companies. It’s predicted that 974,000 new graduates will be hired by small businesses this year, making them a viable alternative.
- Identify candidates: Building an internship program requires an active marketing campaign targeting on-campus students and coordinating with internal resources, such as department heads and professors, as well as external employers and local partners. This collaboration is necessary not only to identify opportunities and recruit students, but also to ensure the right skill sets are matched with employers’ needs.
- Support students: Provide wraparound support services to student interns. This is especially significant for those who face barriers to participation that impact program retention, including transportation challenges, housing instability, and caregiving responsibilities.
- Offload program administration: Identify a third-party organization with expertise in managing the administrative tasks of an internship program. The cost of using an intermediary includes overseeing payroll, insurance, and compliance, and removes the burden and liability concerns that often deter local employers from participating.
- Validate success: As families seek to reduce college debt, public and community colleges are becoming increasingly competitive, and internships with a proven track record can be a key differentiator. It’s important to track and analyze related data, solicit continuous feedback from interns and employers, and conduct exit interviews with students to document the program’s success.
Higher education provides a host of personal and societal benefits, and internships are a vital component of that experience–helping launch graduates’ careers and providing businesses with long-term labor market gains.
Institutions that can leverage local partnerships to expand access to paid internships will be better positioned to attract and retain a diverse student population, increase retention and degree completion, and boost enrollment. This is increasingly essential as more Americans question whether a college degree is worth the cost.
