They’re not paying them that much- $160 000 over four years, including tuition. So it’s $40 000 a year, which is a great deal imo (for both parties).

I assume that, with sufficient screening, you can get someone contributing relatively quickly, and start getting value. I think the key is the screening- they’re not giving this offer to every CS student. At the places I’ve worked, we’ve definitely got value out of interns comparable to a junior developer.