If the value of college is dominated by its http://en.wikipedia.org/wiki/Signalling_(economics) effect, a degree from the "wrong" school could send such a negative signal (you weren't wise enough to skip the degree even though you couldn't get admitted to the "right" school) that the innate value of the education you received doesn't make up for it. I hope this doesn't hold broadly, because I went to a state university. But I would think less of someone proudly displaying, e.g., a degree from a known http://en.wikipedia.org/wiki/Diploma_mill, so it's at least possible for a degree to be worse than useless—the question is how mediocre a school would have to be.