The paper is not the degree. It is a certificate of having the degree. The degree is the fact of having had the degree conferred. This is an objective historical fact that cannot be repossessed, short of 1984 with its memory holes and workers keeping records updated to agree with currently decreed official truth (that is, official lies). Even if the university is obliged to rescind the conferral, that merely adds another historical fact to the record. If an employer regards the recission as a penalty for defaulting on a student loan, they are free to take that as evidence of the student’s financial standing but disregard it as evidence against their academic record.
The paper is not the degree. It is a certificate of having the degree. The degree is the fact of having had the degree conferred. This is an objective historical fact that cannot be repossessed, short of 1984 with its memory holes and workers keeping records updated to agree with currently decreed official truth (that is, official lies). Even if the university is obliged to rescind the conferral, that merely adds another historical fact to the record. If an employer regards the recission as a penalty for defaulting on a student loan, they are free to take that as evidence of the student’s financial standing but disregard it as evidence against their academic record.