As an employer, it does not matter from whence the degree was conferred. (within reason) There is fundamentally no difference between a ‘Prestigious’ school and an otherwise competent school when you are out in the work world. For select micro-fields you may find a preference for certain institutions, but it really boils down to your degree and your interview. In some cases, going to the prestigious school could be a disadvantage. There are considerably more alumni from, say, Illinois than from any one Ivy. Hiring managers often lean toward those from their own alma maters. (all else being equal)
Ultimately, people love to validate their own decisions. Those who went to Ivies think that their education was exponentially better than that from, say, Minnesota. I don’t know that I could bring places like (most) community colleges or ITT/Phoenix or their lot into the same discussion. To me, community colleges are good to save money as a bridge into a ‘real’ school. Your degree still states the name of the conferring instituion. There is no asterisk for those who started at a cc. In my experience, there is a vast difference from school to school, state to state and classroom to classroom. Some cc’s may not adequately prepare you for tougher schools. Some are actually tougher than some of the school to which someone would transfer.