Why choose internship over full-time?

[jkml]

Many programs have an internship built-in during the summer between the 2nd and 3rd semesters (e.g. Princeton, NYU, CMU, Cornell). Some programs (e.g. Columbia, MIT) allow you to go straight to FT work because you graduate in May instead of Dec. If you choose a 3-semester program, you run the risk of being unemployed for several months following December graduation while you wait to jump on the cycle for FT hiring. So what's the real value of an internship if full-time work is an option?

a) For some firms (the most prestigious ones), you have to first be an intern at their firm before they'll hire you full-time.

b) Internships help you learn whether or not you like certain job functions.

c) Resume padding for long-term career help. (An internship at a prestigious company makes you look better 5-10 years into your career)

d) An internship at a Tier 1 company is better than full-time at Tier 2 company because a top internship will help you get FT within Tier 1, while taking a FT job within Tier 2 will mean you're stuck there forever.

e) It's nearly impossible to get FT at first, so you might as well jump into the internship cycle with all the MBAs.

f) Other. Please explain.

 

[Jose T]

I don't know the answer to your question but I can venture a guess.

My impression is that what you refer to as 'the cycle of FT hiring' assumes undergrad or MBA candidates. That is, a hiring manager who is filling positions for entry-level undergrads or fresh MBAs would likely hire in May or June due to the graduation cycle.

MFE students, ideally, would not be placed in these positions if they want to do something relevant to their education. Since they are so specialized, I would suspect that there are not 'classes' of new MFEs joining new firms as there are organized 'classes' of new MBAs and undergrads. The MFE grad would therefore be seeking the more isolated job posting, for which the hiring manager has no incentive to post in May or June versus when the need for the position naturally arose. Also, January or February, being traditionally a time of turnover, may actually be advantageous for the specialist job hunter.

Also important, is that for these more idiosyncratic job postings for which the MFE is likely to be relevantly employed, relevant non-academic experience is of primary consideration and it is also something that the majority of MFE students do not have when they commence their studies. Without an opportunity to gain non-academic quant finance work experience prior to their 'real' job hunt, the MFE student would not be as competitive.

Again, you're asking about the structure of the various 1.5 year structures in MFEs and I'm not necessarily an expert ; just giving one possible explanation based on my observations.

 

[alain]

Many programs have an internship built-in during the summer between the 2nd and 3rd semesters (e.g. Princeton, NYU, CMU, Cornell). Some programs (e.g. Columbia, MIT) allow you to go straight to FT work because you graduate in May instead of Dec. If you choose a 3-semester program, you run the risk of being unemployed for several months following December graduation while you wait to jump on the cycle for FT hiring. So what's the real value of an internship if full-time work is an option?

a) For some firms (the most prestigious ones), you have to first be an intern at their firm before they'll hire you full-time.

b) Internships help you learn whether or not you like certain job functions.

c) Resume padding for long-term career help. (An internship at a prestigious company makes you look better 5-10 years into your career)

d) An internship at a Tier 1 company is better than full-time at Tier 2 company because a top internship will help you get FT within Tier 1, while taking a FT job within Tier 2 will mean you're stuck there forever.

e) It's nearly impossible to get FT at first, so you might as well jump into the internship cycle with all the MBAs.

f) Other. Please explain.

None of those are real advantages. If you get a FT opportunity and it's what you are looking for, go get it. Keep in mind that you probably will have to go part time in order to finish your degree at that point.