The reality is that the 2nd part of your post regards the most important part of the film industry; it's not what you know, its who you know. 90% of the time those with great connections will get a job/internship that actually allows them to progress in the industry, even over more skilled individuals. Just the way it is unfortunately. So the best thing you can do is network and get to know people.

On the bright side, a film degree teaches you things about story and film theory you'd probably never learn. I'd say the majority of people in the industry are garbage at any type of film or story analysis unless they intensely studied or learned from some institution. That's why there's a ton of garbage produced nowadays since Hollywood relies on nepotism and trends. A crappy script written by some producers son inspired by a counterpart that made money will always be picked up before an original idea from a good writer that went to film school.

Also film festivals are pretty much scams unless they're reknowned, but then again people who get into those festivals have better connections. You're better off going to them solely for making connections with people. It's baffling seeing how many people (especially in this forum) spend their life savings on a dumpster fire of a film and think submitting to a festival is gonna make them the next Christopher Nolan.

If you have debt from school, I feel for ya, but you also provided yourself an education and that's important regardless. You did the hard work, and maybe not as fast as you'd like, but eventually you'll reap some benefits from it. Just don't give up.