The point of a secured loan is that if you don't pay, the creditor can sell whatever is securing it and recover some or all of what is owed to them. Taking awa

The point of a secured loan is that if you don't pay, the creditor can sell whatever is securing it and recover some or all of what is owed to them. Taking away someone's diploma because they defaulted on their loan would just be destroying value. It's the equivalent of a bank foreclosing on your house and then burning it to the ground.