Co-Op/Internship - Requires taking 2 semesters off. Thoughts?

First of all I want to thank everyone on this reddit, as a recent lurker I felt I had a strong advantage in the job-search over my fellow students who weren't as informed as me.

To my main point I am a Junior CS major. I am in the process of interviewing for a few different internships, one in particular is for Ashland. I live in the south so cost of living is much cheaper, the pay is $18 an hour which I imagine is probably above average for the area/position. My department head informs me that the intern training program is very well ran and they offer several options for concentration (server infrastructure, development etc.) So for me every aspect of the job seems great, but I'm not sure about extending my graduation a year.

Essentially they want you to go to school one semester a year and work the other semester and over breaks for 2 years. Would you all consider this a strong negative? I would be making less than any post-grad job for 2 years, however the experience would certainly help my chances of getting a higher paying job in the future.

This isn't a question of internship or no internship, obviously I would do this over not having any pre-grad experience. I just want to see other's opinions on the pros and cons of this scenario.