26 May Paid vs. Unpaid Internships: What You Need to Know Before Applying
It’s finals week, your email pings, and there it is – an email announcing two internship opportunities. One offers financial compensation, the other focuses on training.
If you’re like most students, this choice might send you into a spiral of indecision. Over 40% of U.S. internships are unpaid, making this decision even more common than you might think.
The debate between paid and unpaid internships has been going on for decades, and both options come with their own set of pros and cons. This guide will help you break it all down, so you can confidently decide which one is right for your career.
What Is the Difference Between Paid and Unpaid Internships?
Paid internships are fairly straightforward. They offer financial compensation for your work, usually in the form of an hourly wage or a stipend. These internships tend to be more structured, with defined roles and expectations since the companies are legally required to treat interns like employees.
On the other hand, unpaid internships are all about the learning experience. According to the Fair Labor Standards Act (FLSA), unpaid internships in for-profit companies must benefit the intern more than the employer.
This is part of what’s known as the “primary beneficiary test.” Companies that pass this test structure the internship around education, mentorship, and skills—even if no paycheck is involved.
Why are so many internships unpaid? Historical norms play a big role here. Industries like entertainment, fashion, art, and non-profits have long relied on unpaid internships as both a training ground and an entry point into the field. This trend persists today, especially in creative and less traditional career paths, as well as in non-profits.
Pros and Cons of Paid Internships
The most obvious advantage of a paid internship is, well… getting paid. Financial compensation can ease the burden of student loans, rent, and the general cost of living. It also allows you to focus on work without constantly worrying about money. Employers setting monetary value on your contributions also often lead to more trust, responsibilities, and opportunities to shine.
With paid internships, there’s often an expectation for you to perform at a higher level, which can be a great motivator. You’ll likely find yourself working on real projects that add value to your employer, which in turn builds your resume.
While appealing, paid internships are more competitive due to limited availability. Companies that pay medical or office-related internships often seek candidates with prior experience. This makes it challenging for those just starting out to land these coveted roles.
Another downside might arise when these internships demand intense, high-stakes work while you’re still trying to maintain your school-life balance.
Benefits of Unpaid Internships
Unpaid internships often come with benefits that go far beyond financial compensation. Many roles in sectors like non-profits, arts, or fashion are rarely paid internships, meaning unpaid options are often the only entry point into these industries.
One perk of unpaid internships is their flexibility. Without the pressure to generate revenue, your employer may be more understanding of academic schedules. These roles often focus on skill-building, networking, and education, which can be invaluable for your career. And while there are certainly online paid internships for high school students, unpaid ones tend to be much easier to find.
They also frequently include academic credit, allowing you to knock out graduation requirements without loading up on additional classes.
The most significant downside, of course, is the lack of financial compensation. Not everyone can afford to work without pay, which closes the door to some students.
Similarly, depending on the role, tasks may focus more on learning and observing, which can sometimes leave interns feeling undervalued if not properly integrated into projects.
Unpaid Internships: Don’t Overlook the Bigger Picture
Despite the lack of monetary compensation, when positioned correctly, unpaid internships can be genuinely rewarding. Programs like those offered by Absolute Internship serve as excellent examples of how unpaid internships deliver educational and career benefits that extend far beyond money.
Unpaid interns frequently work on unique projects, ranging from contributing to international campaigns to operating in global cities like Singapore or Barcelona. These experiences not only sharpen skills but also offer broader cultural understanding.
Networking might be the strongest card unpaid interns hold. Many interns build relationships at events, mentorship sessions, and team meetings that lead to job offers down the line. Often, unpaid positions can translate to full-time roles or invaluable mentorship connections.
Skill-building also takes center stage. Think of unpaid internships as hands-on boot camps where you’re placed into real-world situations. These experiences allow interns to cultivate resilience, hone soft skills, and expand portfolios. In essence, the skills you acquire in an unpaid internship serve as the compensation for your time rather than a weekly paycheck.
How to Decide If an Unpaid Internship is Right for You
Still wondering where to go? After reading the pros and cons of unpaid internships, here are some self-checks to run through before you commit to an unpaid internship.
Analyze Your Financial Situation
Consider your budget. Can you afford to intern without pay for several weeks or months, or would it put too much pressure on you? Remote unpaid internships sometimes reduce living expenses, allowing those without geographical constraints to still participate.
Consider Industry Practices
Every field has a norm when it comes to paid vs. unpaid internships. For example, non-profits and creative industries are more likely to offer unpaid opportunities due to their financial models.
You should also consider your current level of education and age as it relates to industry norms. For example, it’s unlikely that a law firm would offer paid virtual internships for high school students. You’d be better off trying to find unpaid internships to help you get your feet wet.
Focus on Learning Opportunities
Your internship should offer you actual growth opportunities. Look for internships that promise strong mentorship, educational components, and skill-focused projects. Getting academic credit is another way to make an unpaid internship work for you.
Set Long-Term Career Goals
Ask yourself if the experience will help you land your dream job or pivot into your desired industry. If the answer is yes, the lack of payment might be worth the broader career benefits.
Focus on the Primary Beneficiary Test
Unpaid internships should, again, follow the FLSA’s “primary beneficiary test.” As described above, this means that the intern gets more out of the arrangement than the employer. Legitimate unpaid programs make sure you’re learning and not just working as free labor.
Unpaid Internships: Worth A Second Look
An unpaid internship might not fill your wallet, but it can contribute endlessly to your career progression. These roles open doors, provide training, and help you build the connections you need for long-term success.
Programs like the ones we offer at Absolute Internship refine this experience further by combining practical work with cultural immersion and global networking. If you’re ready to elevate your career with hands-on experience, why not explore Absolute Internship’s offerings?
Whether you’re interested in a paid internship in Bangkok for international students, a remote internship in Barcelona for high school students, or even a paid internship in South Korea for international students, we’ve got you covered.
Start your career adventure today and see where these priceless opportunities can take you.
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