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But from a society point of view
Society as a whole will always consider people with a degree as more educated because that's how we've built our society. In many cases, documents matter more than reality.
True, but will someone who just passed be considere djust as educated as someone who did really well?
Yes, and no, depends on whether or not people know the actual results. If they don't know, then only the school and former classmates will know. But the rest of society will only see the degree and that's all that will matter.
Can't they tell from talking to the person
Unfortunately most people can't.
Nah I don't think that's true. All colleges have to have some credentials to function