[gamblor956]

VFA requires a college transcript (though an unofficial transcript is acceptable if an official transcript is not available). http://ventureforamerica.org/faqs/. Ergo, it is using credentials as a weeding mechanism.

VFA selects the startups their fellows work for based on recommendations of people they know. Ergo, they are using credentials as a weeding mechanism.

VFA may be doing something commendable, but it is most definitely not eliminating the credentials problem.

EDIT: Furthermore, VFA requires a bachelor's degree (or more advanced), a 3.0 GPA or higher in college (but grad school does not count), and green card or residency status. Unlike the factors originally discussed (pre-edit), these are mandatory requirements. All of these are standard credentials filters for companies hiring students straight out of college.