Although there are many benefits to the co-operative education programme, there are some downsides. The negative implications do not fully compromise the number of students undertaking the study, but rather how the programme will affect the government's future funding for education. A huge burden that co-operative education brings to the education institution is financial struggles. The financial struggles come from the schools and universities who put pressure on the departments of education for funding to keep the programme going.
Implications directly to the students who participate in co-operative education is mainly based on direct learning at their institution, whether it is school or university. The co-operative education programme takes students away from school or university. As a student misses a consecutive number of school days, they can start to fall behind in school work and will eventually be unable to cope with their workload. For students who attend school and also participate in the co-operative education programme, commonly called Work Placement or VET courses, they are no longer eligible to be granted direct entry into university. This then gives the student an option of TAFE entry, a university certified bridging course or go on to full-time work after completion of graduation.