An interesting side bit, some foreign universities, particularly in the UK, have strong reputations in the US and cost roughly half of what Harvard would cost you. I'm personally in law and went to Oxford University in the UK on a partial scholarship. That got me solicitations from major US and UK firms (and I'm canadian). I came back to Canada, but had I wanted to go to those places this may have been a cheaper route.
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I think in most cases you pay for the name, which DOES NOT discount the fact that you can get a better education at those institutions. That's why there's a reputation attached to the graduates of a University. Merely seeing a particular college on a resume can get you a call back.
IMO, the top state schools have names that "travel well." Liberal arts colleges, as mentioned before, have regional recognition probably a 150 mile radius? Unless they are one of the legendary ones.
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