LB, that was the way it worked for generations- or if the father could not, he hired a melamed (teacher) for his children. Organized yeshivos for children is a relatively “new” thing- I would guess a couple of hundred years or so. Today it is done in families that live in places without decent yeshivos- for example, in a kiruv community where the rest of the kids are not at the level of the children of the rabbanim/kiruv workers in the community, the father might supplement the boys’ kodesh education until they are old enough to go away from home.
The only “dilpoma” given out by a yeshiva is semicha, and that requires a specific course of advanced study focused on Halacha and its applications. Bachelor degrees can also be given for Talmudic studies (BTL), but nothing official at the lower levels.
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