Seriously, I want someone with a education and some experience, so I'd advertise the post again.
The problem with the education only programmer is that I can't be sure that she can apply theory to practice. She might know her big-O, but does she knows how to make pragmatic decisions that will make business sense for both my clients and my company? I can't possibly know, so despite the impressive paperwork and post-nominal acronyms she's too big a risk.
OTOH, the experienced programmer might well able to hit the ground running. She has shown that she can hold down a job, so there is a good chance that she can add business value and crank out some code. On the other hand, she may not have the depth of understanding to progress beyond monkey-coding. She has shown little evidence that she has the analytical, problem-solving and creative skills that are required to become a first-class developer. To be blunt, she could well be a bit thick. I can't risk the future of my company on someone like that.
Both these candidates have failed to demonstrate that they have what it takes to work with me. They might both be brilliant, but the risk is simply too great to hire either of them. For these reasons:
it is a no hire from me.
That need not be the end of the story:
My advice to the person with the Masters is that she go get some real world experience and come back in a year or two, because we could use someone with her brains.
To my experienced candidate I'd recommend that she spend some of her hard-earned on getting some higher education. If I have my way then there will be a post waiting for her if she can slog through the first year of her degree - at which point we can come to some arrangement over sponsorship for the rest of it.
The ideal outcome is that they both heed my counsel. That way I'll get two great programmers. Perhaps I will even get a chance to pair them up - they certainly appear to be well situated to help each other make the best of what they have to offer.
So now we're all happy, and I can revise my answer and hire them both!