Universities have mixed incentives at best in terms of certifying graduates. A degree program that routinely failed a high portion of students of the program would soon find few students entering the program. Because universities see students as a customer first, there is a strong incentive to give the customer's the product that they're paying for.

University degree program do care about rankings, which entails some concern about the quality of graduates awarded a degree. But they mainly address that by filtering students at admission time. Some program still have weed out courses to nudge students into alternative programs early on. But once the student is committed to the program, there is a strong incentive to award a degree regardless of their demonstrated capabilities.