Graduating debt free definitely gives everyone more options—the student and parents. It gives the student the option of considering grad school and jobs where they’ll learn a lot but might not get paid as much. It gives families the option of helping their student as needed after graduation—secure a place to live, relocation expenses, maybe even help with living expenses if the job market is very bad.
It really is a bad idea to think of colleges as “beneath” anyone. There are great students and teachers at most Us—one just needs to find/create their tribe.