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The issue here is that, first off, you're breaking company code.
When I worked for a bakery inside a large supermarket chain, we were required to take 30minute lunches for every 6 hours worked. That is, if I worked from 9 to 3:30, then it is assumed that 30 minutes of that 6 1/2 hour shift was for lunch. Regardless of whether or not I punched out, the half hour was taken out automatically.
Likewise, in college, I worked for the yearbook as an editor. I was sheduled a set number of hours per week - but they never required me to clock in or out. That means that, regardless of how many or few hours I actually worked, I was paid the same amount. That was their policy.
With the co-op thing, it almost walks the line between my two senarios. Yes, it's a "real" job - but it's run by the school. They said that they will pay you for 40 hours per week. You should not, and I can't stress this enough, work more than that. They can, actually, terminate you for working over your 40 hours.
Don't do overtime, and bring a book for lunch.
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"I've made only one mistake in my life. But I made it over and over and over. That was saying 'yes' when I meant 'no'. Forgive me."
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