Utter rubbish, it might help slightly with getting your foot in the door, but that's it. I went to a small flight school, did it all modular part time and walked straight into a major airline, all off my own back.
Big school mentality is very yesterday. Reality is NO low houred people will get the sort of jobs they could get a year ago, and not for at least 3-4 years to come either regardless of where you trained, the BIG SCHOOLS will tell you what you want to hear so that you delve deep into your pockets to keep themselves afloat!