Flip Side of Poor Job Market: More Internships
by Matt Homer, Asst. News Editor on February 25, 2009 in HKS News
While it is more and more likely that graduating HKS students will face a tough job market this spring, those seeking internships may see increased opportunities. As employers lay-off workers and cut back on new hiring, these same employers may be eager to add low or no-cost interns to fill the gap.
Mary Beaulieu, associate director of the Office of Career Advancement (OCA), says she has not seen any decline in the number of internship opportunities available for HKS students and suspects at least a modest increase. Laura Homokay, Summer Internship and PAE Manager at OCA, says the number of employers asking to participate in this year’s City Fair has increased from last year. They also pointed out that the number of internships administered through HKS research centers has increased.
But while employer eagerness to take advantage of interns may be on the rise, the number of paid internships is likely to fall. Beaulieu and Homokay suspect this may especially be the case among non-profits that are seeing endowment values and donations drop, and among local and state governments that face budget deficits. Homokay has already received at least one call from a City Fair employer who said that while they will still be offering internships, the positions would be unpaid this year.
The difficult economic times make the availability of HKS funding options particularly important for students this year. Two of the most widely accessible funds are the Summer Internship Fund (SIF) and work-study funds.
Both programs offer funding for non-profit and public sector positions, but only SIF is available to non-U.S. Citizens. To be eligible, a student must have an internship offer, be a returning student, and work full-time for at least 8 weeks for a qualifying employer.
Homokay, who administers the SIF, said the auction this year was successful in raising a sum consistent with that of previous years. Students typically receive up to $2,500 in funding from SIF.
For U.S. Citizens and permanent residents, federal work-study is another important option that can be used to supplement SIF funding or an employer’s wages. The program works as a federal matching grant for already secured wages – the government pays 62.5 percent and the employer or SIF pays the remaining 37.5 percent. The program is run through the university, with Harvard paying students their full wage and the federal government and the employer reimbursing their respective shares to the university.
Students can receive up to a maximum of $5,000 from this source of funding. Like SIF, only public sector and non-profit positions qualify for this program. In addition to being a U.S. Citizen or permanent resident, students must also work on U.S. soil (which is broadly defined to include embassies, military bases, and the like).
To qualify for funding, students also need to demonstrate financial need. According to Michael Silvernail, assistant director of Student Financial Services (SFS), an easy indication of whether or not a student qualifies is if they were offered the full amount of a subsidized Stafford Loan when they were admitted to HKS.
Although SIF and work-study can work in tandem to provide up to $5,000 in funding, students who take advantage of this option only receive SIF funding for the portion needed to match the government’s contribution.
If students have received an internship with a qualifying organization, Silvernail suggests they check to see if their summer earnings can be augmented by work-study money. If, for example, an employer pays less than $5,000 but more than $1,875 for the summer, a student could receive more earnings if the employer pays less through the work-study program.
In deciding which internships to pursue, Beaulieu says it is important to first decide upon a particular objective – whether that be living in a specific location, earning a certain sum of cash, or filling a void in a resume. Homokay also suggests that MPP students begin thinking about next year’s PAE in their internship decision.
Whatever the goal, OCA staff members say they are confident opportunities are available for HKS students. But with potentially fewer paid positions available, students will need to start earlier and give extra thought to funding options.
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