I’m going to have to disagree. Graduates of highly selective colleges have a great track record with not only employers but grad schools and are therefore highly sought after. They also have some of the most highly selective programs (think Wharton at UPenn or Journalism at Northwestern) in the US and the world. You think there is no benefit for a brilliant finance major to attend Wharton vs Middle Tennessee State?
There is something to be said about being surrounded by a student body of very smart and exceptional students being taught by world-class faculty, with best in class facilities.
I think if we are being honest with ourselves the key point is that yes highly selective colleges have resources and opportunities that are unmatched but a student can also be very successful going to less selective colleges.