I did two summer internships when I was in college - one on Capitol Hill and one in hospital public relations. I also knew people who did internships during the school year - took a semester off to do them. It kind of depends on the program you're in, though. I don't think the journalism department at my college required an internship, but they were strongly encouraged.
I think (though my memory for these sorts of details is fading) that my congressional internship was paid and the one at the hospital wasn't. Newspapers generally don't pay very well, so I wouldn't expect an intern at the Planet to be paid much, if anything, especially if Metropolis University has a journalism department that would provide a ready supply of eager young journalists who are willing to work for the experience and the opportunity to build their portfolios.
When I did my internship at the hospital, I rotated through the various divisions of the PR department, working with the head of each and learning their function. I helped plan a telethon, scheduled TV appearances, and did lots of writing. I was given real articles/press releases to write, and once I'd proven myself capable, I was given the opportunity to develop story ideas on my own, within reason. My experience with both of my internships - and then later when I managed interns in my real job - is that the regular staffers are delighted to have a capable intern at their disposal and will give them as much to do as they are willing to do. Yes, they do the gofer stuff and the research stuff, but there's also a lot of opportunity to get real work experience.
Hope something here helps
C.
ETA: Someday I'll tell you the very true, very embarrassing story of me
fainting dead away while interviewing a plastic surgeon the summer I did my hospital internship. It was while I was lying on the floor of his office that I decided that my future probably wasn't going to be in medical writing.
