I am currently taking a year off from graduate school, having graduated last May and will be attending a graduate program in the fall. There are definitely benefits to a year off but like anything it has its set backs. I liked having the year off because it gave me time to focus on what my true interests in the subject are so I could apply to appropraite programs. I also was able to spend many months dedicated to studying for the GRE's and going through the application process which can be grueling at times. I also have had time to build a savings account for grad school. In this respect having the year off to work, take time to myself, and having time to dedicate to the process of applying to graduate school has been great. Also having the time to build my resume/cv has been very helpful. The setbacks have been that I feel my second language abilities in french (which is required by most graduate school programs) have weakened as I am not using it as often as I was in school. I also feel that because I have not been writing and researching as activily as I was as a undergraduate that my writing has been affected. I personally think that if you are doing a year off for an internship and then applying to graduate school that you will be just fine. While every decision has its consequences, don't miss out on a once in a lifetime opportunity!! Graduate school isn't going anywhere Best of Luck!