A term originating from Northeastern University (a school known for co-ops) which depicts a student who is scheduled to go out on co-op with a company, but has not yet found a job.
Since a student is on no-op, then he/she has the ability to do whatever they want, such as sleeping in til noon, playing video games, etc. It's like funemployment, only for college students, and not recieving any money.
Chris: Jim, have you found a co-op job yet?
Jim: No, I'm still on no-op
(pronounced 'no op', from NOP the computer assembly language instruction that tells the computer to do nothing)
Loser; a stupid or lazy person.
He's a complete no-op. Ignore him.