If you're hiring a twenty-something Java developer, you're sort of hiring a commodity. Sure, you may care about schools, grades, interview, etc. but a lot of your decision is going to be based on their paper. They may not have worked anywhere, so they may not have much of a work record.

However, over time most people acquire a more unique toolbox of skills. In my case, since my first job out of grad school, I've basically been directly hired either by a referral or directly by the owner or a senior exec. My current job didn't even have a job posting for it.

Large tech companies often just don't take chances on people like this anymore.