Academic qualification (7)
(Other definitions for diploma that I've seen before include "Paper showing examination success" , "Document conferring honour" , "Certificate of proficiency" , "Honorific document" , "Academic certificate" .)
'academic qualification' is the definition.
(I've seen this before)
This is the entire clue.
(Other definitions for degree that I've seen before include "Extent - academic achievement" , "Academic award - stage on a scale" , "an award at Edinburgh, maybe" , "Unit of measurement of angles" , "Further education award - extent" .)