1/4" holes would be better done with a higher speed drill than a 1/2". The smaller the drill bit, the faster they need to turn. Any decent sharp drill bit should make childs play out of 12 1/4" holes in mild steel. Did you use a centre punch before drilling? This makes a big difference too as the bit can wander around when trying to start the hole which could be a factor in the bit breaking. The combination of too slow a speed and too much force on the bit will make matters worse. Cutting fluid helps but even dry, a properly sharpened bit should drill pretty easy. Should have 2 flutes when cutting properly. I've drilled a bunch of holes dry and if the bit is cutting properly, it doesn't overheat.