Discrimination on basis of education

I have worked for the same company for 21yrs. I spent 18 yrs in Louisiana and 3 in Missouri. I sought the personnel job at my plant and was turned down on the basis that I was not a graduate of a preferred school. apreferred school is one which the company recognizes such as Vanderbilt or the Univ. of Pittsburg. What I would like to know is this a form of discrimination on this basis. I was told to my face that I could never get the job because I was not from a preferrred school.
While in Missouri. I was in a position to obtain a environmental and safety coordinator job but this company rather hires from outside the company rather than post or let qualified people know that certain positions are available. Agai, is this being discriminatory. I have a degree in Bus. Admin. and had been a envir/safety Coord for 8 yrs in Louisiana.

[Beth3]

There are no laws that would prevent an employer from only hiring or promoting employees who graduated from the schools of their choice. Absent a unique curriculum a particular school offers that is necessary for a job, that appears to be a foolish practice as the employer would rule out an awful lot of qualfied and talented candidates but that's their choice.

The only time I can think of that this would potentially be illegal is if such a policy had a disparate impact - that is, it eliminated a large segment of people in a protected class. Let's say the employer said they would only hire graduates from ABC University and ABC University only admitted males to their school. The employer's decision would have a "disparate impact" on females as their policy would effectively bar the employment of women.

On your second question, the same answer pretty much applies. An employer is free to fill all job openings from the outside if they wish. Naturally, they can expect to have a significant amount of turnover when all the bright, talented employees who want to get ahead have to find those opportunities elsewhere and quit.