Be proud of your DD. As a graduate of a Big 10 university who worked in small firms and later got my MBA from a top-tier (think top five) university, let me say it can work. I see it working for younger colleagues and the children of friends. So much has to do with one's experiences (academic, work, global, activities) and social skills. Not having the burden of debt opens up a whole world of possibilities. It likely will allow her to steer clear of more shallow employers and to take growth opportunities that others with debt will not take.

Good luck to her!