We interview, and then we do a paid work test. The person comes in a works with several of the staff (the hardest working ones) and after a day we decide if the person is a good fit. In our world a 'good fit' does not mean young white male hacker, but instead means hard worker, understands new process quickly, and cares about detail.
Usually the correct person to hire is obvious. If it is not (if both candidate were mediocre in the work test) then we keep interviewing. The cost in lost time for training a new hire is high, so we want to make sure the choice we make is correct.
So to answer your question directly - we interview, and try to keep an unbiased opinion until after the work test. Then I poll the staff to find out who was better to work with. 99% of the time the staff doesn't know much about the person's education. I definitely would hire someone self-taught without a degree (like myself), and I agree than some people go to college for the wrong reasons.