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I don't know how it works with med schools, but that's definitely not the way it works for CS grads. I've interviewed lots for positions at companies and the issue of where your degree came from is just not a big deal. We're interested in what you can do and what you've done. A better school gives you better opportunities, but the name brand doesn't carry much weight.Ex. A CS company has to choose between a Cal and Stanford graduate(both of which have the same ranking in CS). 75% of the time, it wll go to Stanford just cuz it's stanford.
It's always interesting when you get recent grads applying for jobs, because if they went to a top college, they tend to name drop and then are suprised when no one cares too much.