Back when I was still a graphic design student, we had multiple contests in almost all of our subjects for small to large companies. I understand that student work is appealing and cheap and some companies love to dodge higher fees.
The most baffling client work was when a pretty major magazine publisher came to us and asked us to rework their entire magazine from the ground up. Every student, individually, producing 30 different visual identities. They demanded a minimum of three rounds of revisions.
Me: Is this really a contest any more?
The grand prize for all the hassle?
A three-month unpaid internship.