Good for her. At the end of the day it won't matter for most people what school name is on the diploma. As long as you have it.
I'll go a step further than that. I have occasion to do hiring now and again. At some level, I expect people to stop emphasizing what logo was on their backpack and start emphasizing their accomplishments.
I completely agree. I've attended several schools and have taught at a couple including a top tier research university that is easily one of the top 25 in the world and often makes the top 10 lists in the US.
You will get a much better education at a community college or a small liberal arts school in most cases. For graduate schools or for many specialties the school starts to matter.
And as Vintek said, for anything but an entry level position, what you have accomplished matters far more than where you went to school. I'd personally be more inclined to hire an MBA who busted her butt working full time and raising 3 kids while going to podunk U online than a ring-knocker who graduated top of his class at Stanford but spent his weekends on the golf course recovering from his hangover from the frat party.