I think this is generally a good thing. I believe there are really two positive things that can come out of going to college - either you get a name-brand degree that opens doors and gets your resume looked at, or you get useful skills that enable you to go down a particular career path (e.g. CS degree). Obviously in some cases it'll be both. The reality is it's really tough to make any case that a humanities degree…
"from a lower or even mid-tier college is a worthwhile investment " I always found this idea amazing, we just accept that univerities are not really there for education but instead a giant sorting machine to separate plebs from (rich/talented/dilligent/take your pick). They don't work like a normal market, there best company grows their production, and supplies millions with the best goods. Oxford/Harvard take their…
In the end it doesn't make a difference. Employers want to hire good candidates. Hiring is hard and the outcomes asymmetric: very good candidates can give at most 10x performance and for a company with 100+ employees that barely registers, while very bad candidates can create absolutely stunning destruction. So hiring good candidates is a high stakes game. There's lots of noise, any way to get signal out of this noise is valuable. Employers pay big fees to recruiting agencies to get good hires. A reputable university, like Harvard or MIT is like an ideal recruiting agency (and no fees): not only it finds the best candidates for you, it also trains them for 4 years. The 4 years of training function as a further filter as well. In the end, someone graduating for such a college will be quite a sure bet for employers, and so they'll have much, much better prospects in the job market. So they are willing to pay for this. Are they born smart and Harvard does not teach them anything new? Who cares? They'll get much better job offers than if they graduate from Tulane, and that translates in more money in their pockets.