Does achieving a degree means that you have become a civilized and educated human being? I don't think so. Getting knowledge won't make you an educated person. The most common example of illiteracy by educated people is when there is littering iin educational institutes and illiterate people are hired to clean the mess. cramming your course books won't bring wisdom, it will only bring knowledge without enlightenment.
Graduate but still illiterate depending on what learnings a person needs. There are those who are good or graduated college yet illiterate of the real world was. There are those things that are learnt only from experience and not at school. And so there are still graduate who are still illiterate.