This both drastically increased the value of the degree—it was very common to end up getting a job in one of the places you did a co-op term—and gave you some money to help cover your costs for each upcoming school term. It also helps that Canada subsidizes its universities, but I still would have had 30k in tuition alone if it weren't for co-op. As it was I left with ~13k in debt and I had lived reasonably comfortably and chosen to never work while I was in school.
I really don't understand why co-op hasn't been adopted almost universally. It's hugely beneficial to all parties.