There're very few extraordinary students who can start contributing from the start. But those students are already stars of their own, not the kind you can hire. For the vast majority, there's a very long journey from graduation to professional developer. This applies also to PhDs, and yes, also from the best universities in the world (I have those in my team often). A company that only hires junior graduates as devs is a company that doesn't take software seriously. Such companies often collapse under their own weight