For today’s college students, internships have become the gateway to securing that first job after graduation. Especially at elite institutions like Cornell University, the general consensus is clear: internships are the key to success. Unfortunately, this relentless pressure to build resumes has cultivated a troubling norm. Too many students feel compelled to work for free, often for the entirety of the summer. Although employers emphasize the value of learning and experience, unpaid internships are just unfit for the current economy as they are inherently exploitative, devalue labor by promoting the idea of experience being a sufficient compensation, and disproportionately harm students from middle/lower-income backgrounds who can’t afford to exchange paycheck for the experience.

How are students expected to manage the rising cost of living while working for free all summer? The reality is not all of us can. Unpaid internships create a division that caps opportunities for low and middle-income students while inevitably perpetuating a system where only the privileged can afford to “gain experience.” 

The financial burden of unpaid internships is significant and largely overlooked. On average, students face housing, transportation, and basic living expenses totaling $6,000 to $7,000. For students already juggling student loans, this additional living expense is an unsustainable burden. The truth is that unpaid interns are not just working for free but rather paying to work. 

We need to consider the impact of unpaid internships on widening racial wealth gaps. For example, the average Black family owns a total asset value of approximately $3,600 – just 2% of what the median White family owns. The average Latino family has total assets of $6,600 – just 4% of the median White family. These stark disparities force marginalized families to make difficult decisions: either take out additional loans to afford unpaid internships or forgo them entirely, losing out on opportunities that are supposedly pathways to future success. Unfortunately, for many who chose the former, it means accumulating more debt without immediate financial reward to sustain their education or early career progression. 

During my time at community college, I spoke with many students living paycheck to paycheck. When the topic of internships was introduced, their responses were almost identical: most of the paid internships offered too little compensation to even be considered, let alone the unpaid ones. For them, summer is not a time to work for free; it’s a crucial period to earn enough money to make it through the academic year, even if that means taking a part-time job unrelated to their desired career path. This further continues the cycle of inequality, making it harder for marginalized communities and minority families to close the wealth gap. 

Moreover, the systemic reliance on unpaid labor decreases incentives for employers to establish paid entry-level employment. Why would companies offer fair compensation when they can get free labor from interns? It breaks the labor market standards and creates a culture where entry-level employees are undervalued. The result of such saturation of unpaid interns in the labor market will push young workers to accept low-paying jobs as they compete with those willing to work for free in hopes of gaining experience, perpetuating a cycle of exploitation. 

The issue of an unpaid internship isn’t just a personal burden; it deepens inequality and suppresses fair wages across the labor market. With a few policy and structural changes, we can help bring fair compensation for all interns. First, universities can play a crucial role by setting an example by promoting more paid internships through their career service offices. Elite institutions can loosen their requirements for grants or stipends to fund students who secure unpaid internships to help offset the financial burden. For example, Cornell’s Summer Experience Grant helped me take a 10-week unpaid internship without my savings taking a hit. The institutions themselves could also establish more paid internship opportunities on campus for students from diverse socioeconomic backgrounds. Secondly, legislation must be involved to ensure internships are paid. Federal and state governments can take initiatives similar to the 2018 bipartisan effort to secure $14 million (later expanded to $17 million) in funding for a paid internship program in Congress. Such national efforts in legislation would be a crucial step toward leveling the playing field for interns, opening up new opportunities to a wider pool of candidates who might otherwise be excluded. Lastly, companies that rely on unpaid internships should adhere to stricter guidelines by the Department of Labor to ensure that internships do not exploit young workers under the guise of “gaining experience.” 

The economic and social consequences of unpaid internships are clear, and it is time to discontinue them. These positions prevent students from advancing in their careers and create economic inequality. It is time for the students to be recognized and compensated for their work. Let us help ensure that all students, regardless of their financial status, can have a fair shot at success.