It seems that the author has overlooked the option of staying in Waterloo and working for one of the many companies that are actively looking for talented students.
Edit: I was a UW co-op student and did all my terms in Waterloo.
I couldn't wait to get away from Waterloo for my work terms.
Winters in Waterloo are extremely unpleasant! My last two work terms were in Brazil and I actually ended up working for this Brazilian company after I graduated but like most of my peers I could have called on any of my former work term companies and instantly gotten a job without putting my resume in amongst the pile of unknown new-grad resumes.
Edit: I was a UW co-op student and did all my terms in Waterloo.