You should be commended for your hard work. You have nothing to be ashamed of.
In this situation however, we're talking about something a little different. This person you work for, has a degree from a well-known school. PSU is not Ivy League, but it's well-regarded as turning out decent grads.
Your boss may have their position through other means. Perhaps their family has connections with others in your company. Perhaps your boss has good administrative skills (which don't have to be degree-specific). Perhaps your boss is a good yes-man, schmoozer, or whatever. You'll have those in any company, regardless of the education. In this case, the degree opens the door for bigger things.
My point was that he, like others of his "class" already had the advantage to go to a "better" school. So, I tend to agree with the writer of the article here. Money breeds money. I am not discounting my own skills, but just realizing that some people already get to start off at a much higher standard of living (thanks to parents w/ money mostly) that the rest of us have to work for to even get to that point. I don't begrudge any honest working person who has money. What upsets me, though, is the plethora of kids who party and goof off in college but still end up getting great jobs with good pay...all thanks to their well off parents subsidizing them the whole way.
Both my husband and I hold degrees from PSU. There are a lot of PSU grads, and we network for jobs. Husband got his job because of a PSU grad that worked for that company, and he has since helped a few others get in the door. I can say all the people he has helped had the grades and work ethic his company needed, he turned down a few because he didn't want to hurt his reputation by recommending someone that he knew wasn't exaclty qualified.
Once a Nittany Lion, always a Nittany Lion!!