The funny thing is, I'm hearing the exact opposite complaint coming from some of the people with many years of actual work experience in their fields. They're saying that recently, the college grads with a B.S. or Masters in the field are getting hired over those with real experience.
I don't know? Personally, I suspect the REAL issue is just a high unemployment rate overall. We're all stuck in a "buyer's market" when it comes to those doing the hiring, so expectations and requirements are very high, and opportunity to get hired is low. No matter where you're at on the education and/or skills ladder, it's difficult to get hired right now. So people begin tossing out accusations, trying to explain why they can't get jobs.
I've worked in I.T. for over 25 years myself, and yet I don't have a degree. (I'm one of those people with "some college", meaning a few classes shy of an Associates' degree.) I've *definitely* encountered my share of jobs I was passed over for because someone really considered the degree of prime importance. Yet I don't think my track record for employment is really any worse than my counterparts who did have the 4 year degrees. Yeah, some of them earned $20K - $50K/yr. more than I did, especially during the dot-com boom era.... but in the long-haul? A lot of them lost those high-paying jobs when budget cuts or corporate mergers came around and they had to accept less to get back into the ranks of the employed. Others just got burnt out on I.T. completely and changed careers.
Meanwhile, I don't have all the college debt they had to pay off, and since my salary has been relatively steady for the last decade or more, I didn't get so caught up in the thing of moving to a more expensive area, buying a large house, etc. -- only to have to give it all up when times got rough.
There's a key difference though between the "old guys" like myself and people trying to get a start in I.T. today. I think most of us who lived and breathed computers in the 80's really got into it when it was still a hobbyist's world. Corporate America wasn't even really looking at home computers as more than a passing fad, or something to just "keep an eye on, in case it eventually became useful". When you bought a computer ,you got a 200-300 page manual you had to read, cover to cover, to learn how to make it work. You might have shared knowledge with a few friends you made who owned the same machine, or joined some computer club in town. But all in all, you had to be really motivated to learn it, hands-on. Otherwise, why even waste time with it? My college courses in anything resembling I.T. were largely a joke. Either I knew way more than the professors did, or the courses went in depth on something I didn't know much about because truthfully, it DIDN'T MATTER in the grand scheme of I.T.
These days, I think colleges have figured out much more about what people actually need to know to be successful in I.T. -- and you actually *can* take classes and learn really useful material. At the same time, I see a lot of younger people who seem to be just as "into computers" as I was growing up, but they focus on much different things; social media, web sites, mobile device apps, and MMORPGs that can really suck up a LOT of one's time. It's all pretty cool and entertaining stuff -- but won't translate that well to a career doing network or systems administration, working as a PC support specialist, or systems analyst.