Sorts out degrees (6)
I believe the answer is:
grades
This clue is a double definition.
'sorts out' is the first definition.
(grading is a kind of sorting out)
'degrees' is the second definition.
('grade' can be a synonym of 'degree')
(Other definitions for grades that I've seen before include "Assigns rank to" , "Ranks or classes" , "Relative positions or degrees of value" , "Levels of proficiency or value" , "Stages or degrees" .)