What exactly do you mean? Perhaps if that student founds a startup or joins as an early employee immediately after dropping out. I doubt a student who just wash

What exactly do you mean? Perhaps if that student founds a startup or joins as an early employee immediately after dropping out. I doubt a student who just washes out or lacks work ethic gets a particularly valuable signal if they decide to apply to a startup some time after, although it's probably easy enough to present the departure in a more favorable light, in which case the dropout would regain some prestige.