Firms match students, internships — for fee

MILWAUKEE — Claire Richardson knew this summer would cost her money. Whether she chose to take an unpaid internship, study abroad or stay at Southern Methodist University and take summer classes, she and her parents would have to pay.

So that's why she didn't mind spending thousands of dollars to land an internship, plus housing and food, for a summer in New York.

"When you look at it you're going to be paying money wherever you are or whatever you're doing," said Richardson, a 20-year-old sophomore who will intern this summer at brokerage Smith Barney.

Hunting for an internship takes time, and as more students realize their value, competition is getting fierce. A slew of businesses have popped up to help match students with internships, charging hundreds to thousands of dollars to help them write resumes, identify potential employers and find summer housing.

About three-fourths of all college students have had internships or some type of professional work experience by the time they graduate, said Phil Gardner, director of Michigan State's Collegiate Employment Research Institute. When he started following such trends 25 years ago, only 35 percent to 40 percent of college students interned.

"It's just one of those things you have to have before employers will even consider looking at your resume," he said.

But students shouldn't pay to find an internship, he said, because most universities have career centers where students can search for free.

"A student doesn't have to do that, in my opinion," Gardner said. "It just tells me that they're not going and using their resources."

Richardson said she — and her parents — didn't mind paying a company like University of Dreams to secure her internship. Because she was only in her sophomore year, she felt she faced more competition. She tried going to her career center, but most jobs were in Texas and Richardson wanted to go to New York.

University of Dreams uses its staff's personal contacts at 500 companies to get students internships with employers they couldn't otherwise get into, said CEO Eric Lochtefeld. For interns, that's better than sending in a resume and hoping, he said.

"Does any college student really, sincerely believe that their resume will stand out or get better consideration than an actual introduction would provide?" Lochtefeld said.