Damn told him straight up like that huh margaret?
I still do this and make money off it and im starting to really come up... You never thought my stuff was that good... its all who ya know not what you know in this day and age. give the kid a chance is all im saying...no hate...
That statement has been around a long time, trust me I know, I'm the old dude.
But it is really a half truth:
If you suck, it doesn't matter who you know.
If you are good and don't know anyone then you won't get work-
Work is all about connections.
As mentioned DON"T work for free. I know, tough to do when you are just starting out and you are excited about Graphic Design. If your local connections can't pay hard cash, BARTER, as already mentioned. Do one for free perhaps but after that "pay up sucka!"
The problem with doing work for free is that you become the bargain basement designer and you are taking work away from established designers.
Once you become the established
paid designer then you'll understand this concept

and you have to pay for your overhead.
Don't give up.
Don't tweak shit to death- easy to do in this digital age- GET your portfolio in to the hands of people that will possibly hire you.
This happens a lot with Portfolio Prep- people agonize over every little detail to the point where the Portfolio actually never gets sent out to Art Buyers.
"If I just do this then I know they'll LOVE it and I'll get the job"
Ever seen an Art Buyer's office? Stacks of Portfolios
This is where the "Who You Know" matters. YOU need to know who they are so they can know who you are.
It takes work to get work.
Don't get all pissy if someone doesn't like your masterpiece- but if 4 out of 5 people don't like it then go back to the drawing board.
Be careful on showing your work in the Forums- only because you'll have 3 billion or so critics- unless you are willing to roll with the punches that come along with such a large pool of people to make comments.
You are in a good spot, being a student, hit up the Art Buyers for a Portfolio review, they are more likely to help you out now then after school.