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Yes. Or at least the presumption is that they can.
Discrimination disallows picking a candidate over their national origin, yes. However it does not disallow to pick a candidate who has a local education over that who has a foreign education.
The employer would argue that they are doing this to ensure that the education received is quality, relevant, etc. The candidate may overcome this presumption by attempting to show that the employer has conveniently excised all foreign-born and immigrant applicants by doing this and that their real reason is discrimination on national origin.
Whether or not that is true - that would be for the jury to decide.
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