I'm from the generation before the internet.
Most of us were self taught and when I met with a recruiter a couple of years ago, I found out that during the course of my career, names have come up for things I had been doing all along "ETL" for example.
I have no degree, I've just been doing this for 25 years now.
Most of the industry has been made up as we've been going along.
Now, if you are dealing with a hobbyist vs a recent grad, I would personally take the hobbyist.
You can teach skill, you can not teach hunger, drive, passion, or natural talent.
An advantage that many of us self-taught folks have is that we think outside of the box if for no other reason that we don't know where the box is, so to speak.
That said, before considering anyone (people with degrees included) ask for some source code, ask them how they would approach problem solving, try to determine how much passion that they have. Many people go into IT because they see the earning potential of the field. Those folks rarely have the natural talent.
Then there are those of us who have been coding since childhood, literally.
If the person has the passion give them a shot, provided they demonstrate a willingness to get up to speed on their own time.