Internship Pay: Fair Compensation For Students

what is a reasonable pay for student internship

The topic of reasonable pay for student internships is a complex one, with many factors influencing the pay rate. While some internships are unpaid, others offer competitive salaries that vary based on the company, position, location, and other factors. On average, student interns in the United States earned $31,256 annually as of September 2025, with an hourly rate of $19.97. However, this varies across states and cities, with some locations offering significantly higher salaries. The type of internship also plays a role, with graduate, teacher, and clinical externships typically being the highest-paying. Additionally, economic factors, such as the cost of living, can impact the reasonableness of internship pay. Understanding the legal framework, such as the Fair Labor Standards Act, is crucial to determine whether interns are entitled to minimum wage and overtime pay.

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Student internship salaries vary by state and city

Student internship salaries vary across the United States, with location, education, and experience being significant factors. The average student internship salary in the US is $31,256, with an hourly rate of $15.03. However, salaries can range from $21,000 to $44,000 annually.

Some states offer higher salaries for student interns than others. Alaska, Massachusetts, and Rhode Island are among the highest-paying states, while Oklahoma, Indiana, and Missouri have the lowest average salaries. Additionally, certain cities, such as Boston, Seattle, and San Francisco, offer higher wages for student interns.

When considering location, it's worth noting that cities with a higher cost of living may not always provide significantly higher salaries. However, some cities, like Bumpass, VA, and Scotts Valley, CA, offer salaries above the national average, which can make relocating for an internship economically advantageous.

The type of internship also impacts pay. Graduate internships, teacher internships, and clinical externships tend to be the highest-paying. Additionally, certain companies, such as Microsoft and Pace University, are known for offering competitive salaries for student interns.

College program internships, which may be a subset of student internships or a separate category, have a slightly different salary range. The average yearly salary for a college program internship is $34,803, with an hourly rate of $16.73. The salary range is typically between $25,000 and $47,000 per year. Oakland, Washington, DC, and Jersey City are among the highest-paying cities for college program interns.

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Internship pay depends on the company, position, and location

The pay for student internships varies depending on several factors, including the company, the position, and the location. While some internships are unpaid, others can offer competitive salaries that attract top talent.

Company size and industry play a role in determining internship pay. For example, large companies in lucrative industries like Big Tech or Finance may offer higher rates to secure the best interns. On the other hand, smaller companies or non-profits might have more limited budgets for interns. Additionally, some companies have established themselves as offering highly competitive internship salaries, such as Microsoft, Google, and Brigham and Women's Hospital.

The specific position and responsibilities of the internship also influence pay rates. Internships that require specialized skills or knowledge may command higher salaries. For instance, graduate internships, teacher internships, and clinical externships tend to be among the highest-paying types. Furthermore, internships that are part of competitive fields, like Big Tech or finance, can also lead to higher pay.

Location is another critical factor in internship pay rates. The cost of living in a particular city or state can significantly impact the salary offered to interns. For example, in the United States, Boston, Seattle, and San Francisco are among the highest-paying cities for student interns, likely due to their higher costs of living. Additionally, certain states, such as Alaska, Massachusetts, and Rhode Island, tend to offer higher internship salaries than others.

It's worth noting that internship pay rates can vary widely, even within the same company or position. For instance, an internship in a large city may pay more than one in a rural area within the same organization. Additionally, internship salaries can fluctuate based on economic trends and the job market.

While some internships are unpaid, it's important to consider the legal framework surrounding this. In the United States, the Fair Labor Standards Act (FLSA) requires "for-profit" employers to pay employees for their work. However, interns and students may not always be classified as "employees," and therefore, compensation may not be required. Nevertheless, interns should understand their rights and the expectations of their specific internship regarding compensation.

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Interns may not be considered employees and may not be entitled to minimum wage

The Fair Labor Standards Act (FLSA) requires ""for-profit" employers to pay employees for their work. However, interns and students may not be classified as "employees" under the FLSA, in which case they are not entitled to minimum wage or overtime pay. Courts use the "primary beneficiary test" to determine whether an intern or student is an employee under the FLSA by examining the "economic reality" of the intern-employer relationship and identifying which party benefits more from the relationship.

Some of the factors considered in the primary beneficiary test include the extent to which the intern and employer understand that there is no expectation of compensation and that the internship does not entitle the intern to a paid job upon completion. Another factor is the extent to which the internship provides training similar to that in an educational environment. If the analysis reveals that the intern is the primary beneficiary of the relationship, then they are not considered an employee and are not entitled to minimum wage.

On the other hand, if the analysis shows that the intern is actually an employee, then they are entitled to minimum wage and overtime pay under the FLSA. Paid interns must be paid at least the applicable minimum wage for all hours worked and overtime wages if they work overtime. However, the specific pay rate can vary depending on business reasons, the market, affordability, and the value of the intern's work. Additionally, interns who work less than 30 hours per week or for less than 90 days may not be entitled to group health insurance coverage.

The average student internship salary has been rising over the years and currently stands at $31,256 annually, with hourly wages ranging from $10.10 to $34.13, depending on location and industry.

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Salary ranges for student internships

The salary for student internships varies widely depending on several factors. These include the company, position, location, and the student's level of education. According to ZipRecruiter, as of August 30, 2025, the average hourly pay for a student internship in the United States is $18.84, with wages ranging from $10.10 to $34.13 per hour. However, Zippia reports a higher average hourly wage of $19.97.

The average student internship salary has increased over the years and currently stands at $31,256 per year, a 14% change over the last decade. This salary can range from $21,000 a year at the 10th percentile to $44,000 at the 90th percentile. Graduate internships, teacher internships, and clinical externships tend to be the highest-paying types of student internships.

Location also plays a significant factor in internship salaries. For example, Bumpass, VA, Scotts Valley, CA, and Wasco, CA are among the top-paying cities for student internships, with Wasco, CA offering 28.4% more than the national average. Boston, MA, Seattle, WA, and San Francisco, CA are also known for their competitive internship salaries.

Some internships may be unpaid, particularly in certain fields or for freshmen students. However, it is worth noting that the Fair Labor Standards Act (FLSA) requires "for-profit" employers to pay employees for their work. Courts use the primary beneficiary test to determine whether an intern or student qualifies as an employee and is therefore entitled to minimum wage and overtime pay under the FLSA.

When considering an internship, it is essential to weigh the financial compensation against other benefits such as skill development, industry experience, and networking opportunities. Additionally, the cost of living in the internship location should be factored into the decision-making process.

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The highest-paying student internships

The average student internship salary has risen over the years, with the current average annual salary being $31,256, a 14% change over the last decade. The average hourly pay for a student internship in the United States is $18.84, with wages ranging from $10.10 to $34.13 per hour.

The highest-paying cities for student interns in the United States are Boston, MA; Seattle, WA; and San Francisco, CA. The highest-paying types of internships are graduate internships, teacher internships, and clinical externships.

Tech internships are the highest-paying internships in the United States. Fintech firm Stripe Inc. and video game developer Roblox Corp. offer the highest salaries, with an average monthly salary of $9,000, an hourly wage of $56, or an annual salary of $108,000 for entry-level internships. Tech internships usually require degrees in computer science, engineering, or related fields.

Finance internships are also highly paid, with companies like Capital One Financial Corp., JPMorgan Chase & Co., Credit Suisse Group AG, and McKinsey & Co. Bain & Co. offering competitive salaries. These internships often favour students with a background in finance, economics, or business.

Other high-paying internships include those in consulting and advisory firms. Companies like Facebook/Meta, Amazon, Apple, Netflix, and Alphabet/Google (FAANG+) are known for offering competitive salaries to interns.

Frequently asked questions

The average hourly rate for a student internship in the United States is $19.97, with wages ranging from $10.10 to $34.13 per hour.

According to the Fair Labor Standards Act (FLSA), interns and students may not be considered "employees", in which case they are not entitled to minimum wage or overtime pay. However, if courts determine that an intern or student is, in fact, an employee, they are entitled to both minimum wage and overtime pay.

The pay for student internships can vary depending on the company, position, location, skill level, and years of experience. For example, internships in certain cities like Boston, Seattle, and San Francisco tend to offer higher salaries. Additionally, internships in specific industries, such as finance and technology, may provide higher hourly rates.

The average pay for student internships in the United States has been increasing. In 2014, the average annual salary for student internships was $25,518, while in 2025, it rose to $31,256, representing a 14% change over the last decade.

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