First some details about myself,
I am a 20 year old college student (Junior standing, soon to be Senior in a few weeks) interning in a Software Engineering position, I've been working at my currently company (>1000 employees) since beginning of June last year, working full-time over the summer for about 3 months and part time (10-20 hrs/wk on non-break weeks). I was informed ~1 month ago that the company was not able to hire me full time after I graduate due to budget concerns, and they had decided it would be best to just not continue my internship into this upcoming summer.
Just a few days ago, I met with my manager to discuss final details about my departure, and informed me that our department was going to be telling HR that I am resigning instead of being laid off.
Is this normal? (and can they do this?) This seems like a really sketchy behavior to have. I am worried that the company might be doing it to protect their own reputation, but I feel like it might be putting mine at risk (making me look like someone who doesn't want to stay at a company, when in reality, it wasn't my choice)
Should I be concerned professionally/morally/legally/financially?
(As a side note, I am still being claimed as a dependent by my parents, so I am not sure I could try to claim unemployment)
I am in the U.S.