Because unless you are an academic what good would that do? Employers would still know you had obtained the degree and at worst there might he a small discount on your starting salary. You wouldn’t be fired for losing it.

Or come up with a solution that doesn't result in thousands of dollars of debts after graduation. Something like tuition free universities...

Is the value of the degree the knowledge and experience (and connections) you made along the way, or is it just the signalling that this institution vouches for your ability to clear a bar? Interesting philosophical discussion point. If the value of the degree is the former, there is literally no way that a bankruptcy judge could force you to stop talking to friends or forget the things you learned. If the latter, well, could the court possibly enforce 'not talk about your experience at college' on your resume or in all your job interviews? Even if you had your degree taken away because of bankruptcy, it still would be something that you could mention in some way, right?

If it's a medical degree, they could certainly strip you of all the formal licensing.

A degree is a piece of paper. You can't seize the real value which is in the head

Personally, I think the real value is in the brand.