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I found out that when you "kick out" a Sim, his entire inventory goes to the remaining Sim - including the diploma. Perhaps to make a village diploma hoarder and then to delete him every now and then?
Am i the only one who likes the diplomas XD. I think they go great in the house's living room near all the awards and shelves. They make an ok decoration, but if you do a legacy they can get aggravating.
I don't really have problem with them. Most of the time they make for nice decoration, but when I don't use them, I just stuff them in the family inventory and forget about them.
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