I've many friends who are administrators in NJ school districts, and they all scoff (don't get to use that word too often) at that argument. The differential is not very big in a multi-million dollar district, and most districts have programs to get teachers masters degrees anyway. I think the majority of districts look to hire the best person they can. BUT, it is really hard to figure out who that is. You've got a ton of 22 year-olds and their resumes are all practically identical. So I always told my students, "Do whatever you can to stand out. If there is a student committee you can be on here at RU, get on it. If there is volunteering you can do, do it. Get to know your professors. Sure, they will all write you a good letter, but you want your prof to pick up the phone and say, "Ed, this is the kid you want."" Also, in the greater scheme of things, if you want to go teach in California or Illinois, Rutgers is going to carry a ton more weight than TCNJ or MSU, fair or not.
TCNJ and MSU are really excellent schools of education for teacher training. It is where their focus is and they do a great job of it. I have former students teaching at both universities and they are outstanding. It's a completely different approach than RU's GSE. At, Rutgers, the approach is: we want you to have a major in a scholarly discipline, and then get the training to become a teacher (BTW, "training" has become a non-PC word, but hell, we train surgeons and ballerinas, so I don't see what the problem is.). Doing your student teaching a year or so later can make a difference.
So, to make a long story medium, there might be a few who would go for the cheaper candidate, I think more are going to go for the RU degree and the masters that comes with it.