>> When I talked to the students, they were all bright, smart, interesting and motivated.
Lol. You obviously were not talking to them very much. Half of elite grads are boring dullards these days. They lack confidence and originality. They only bother with "projects" when they think those projects make great resume items. They never attempt anything that they think might fail. Someone who has never bombed a class or exam, never reached too far, doesn't have enough experience yet. Also, if typos on resumes cause you to drop applicants then you are missing out on great people. You think any of the kids who hire resume writers have typos? A typo is evidence that the applicant actually wrote it themselves. That's a plus imho.
The legal field has a trick in interviews, but it is applicable to any field: Ask the applicant to tell a story about something they saw happen. The one who could put a narrative together on the fly, the one that could organize their thoughts as they spoke, those are the people you want. Unless you are hiring ditch diggers, effective communication means more than base skills, let alone typo avoidance.