All universities have contracts and forms that must be read and signed upon acceptance. Many of these papers are related to the universities code of conduct. Many questions have been asked related to the universities code of conduct concerning degree revocation.
One question that was asked, is it allowable to revoke the students degree after graduating? In one case at Kent State University as written in Gary Pavela's essay "For The Same Reasons That Students Can Be Expelled, Degrees Ought To Be Revocable" the universities Board of Trustees and a court of law found it a legal course of action based on fraud and deceit to revoke two students degrees.
This outcome was reached based on deceit and fraud related to their academic developments in obtaining their degree. In this situation I agree on the outcome. Deceit and fraud are windy terms for cheating. In any case of cheating there are always strict consequences, as there should be. In cases such as these any investment made to obtain a degree under false pretenses becomes null and void, as it should be. I believe if financial aid is involved it should be paid back along with revoking the degree even after graduation.
In another documented case that took place at MIT, a student's degree was revoked after graduation, for five years. This decision was not reached based on the student's academic evaluation, but on the grounds of misconduct related to a hazing incident. By coming to this conclusion they made the many thousands of dollars invested in obtaining this degree obsolete.
In a case such as this there should be definite rules put in place and understood by both parties involved. The individual's in this case being the institution and the student. These rules should be stated clearly in black and white in a very detailed manner and should include such topics as a statute of limitations concerning certain areas in the code of conduct.