@BigAl07 I took the fact that he is a student at the university and this is an unpaid internship to mean (perhaps wrongly) that this is an academic internship. Many degree programs require a academic internships as part of the curriculum. They literally give you credit towards your degree and it’s sometimes required to graduate.
Also your definition of the Educational exception seems to only cover section (A) of the definition given in the FAA Reauthorization Act for “Educational or Research Purposes.”
2) EDUCATIONAL OR RESEARCH PURPOSES.—The term ‘‘edu- cation or research purposes’’, with respect to the operation of an unmanned aircraft system by an institution of higher education, includes—
(A) instruction of students at the institution;
(B) academic or research
related uses of unmanned aircraft systems that have been approved by the institution, including Federal research
;
(C) activities undertaken
by the institution as part of research projects, including research projects sponsored by the Federal Government; and
(D)
other academic activities approved by the institu- tion.