Some colleges do insist on a "brick and mortar" office environment for college credit. However, many -- such as Columbia and Champlain -- are moving toward acceptance of virtual internships as bona fide experiential education opportunity. Check out YouTern.com... you'll find many available internships there.
YouTern would never suggest giving login information to an employer, or anyone else. And it highly unlikely -- unheard of, even -- that a recruiter would ask for login info or passwords.
We've heard of several applications that contain fields for links to social media sites, including Facebook... so assuming the commenter used "login" when they actually meant "URL" or "link".
Strongly encourage you to check out YouTern (www.YouTern.com) -- great mentor-based internships at small-team environments... start-ups, smallbiz and non-profits.