Post grad intern, Contractor & then?

I recently completed a short internship in New York as a recent graduate. I found the experience to be mixed due to my lack of total knowledge of the company. However, I still appreciated the opportunity and was able to make a decent amount of connections while I was there. I had to leave due to personal/family financial issues, but I did not really ask for a contract position since the company budget seemed too tight as it was. At any rate, I did not mind not having an internship right away, but does anyone here think schools should push for more Co-op internships during school? Or is it really up to each student to do the work and find the experience?

I am personally pretty mixed on the situation. I am sure I would have appreciated coming out of school with some type of internship experience even if it was at a place that I do not necessarily gravitate towards design wise. My mindset is that if I prove myself capable as a designer through an internship, I would hope that as said above, the company would make considerations for full time employment. But given the current state of the economy or whatever situation, seems like contracting work is the way they get around money issues temporarily. Anyways, I am very very new to this field as a profession, so reading topics like this help give me insight. So I wish the best of luck to everyone who is still searching or hoping for the step up to full time.