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Wicca's Degree System
Though there are some exceptions, most Wiccan Traditions use a three-degree system of initiation. And though the material associated with each degree varies from Trad to Trad, the significance of each degree is roughly similar in all Trads.
A few Traditions initiate students to First as soon as they have committed to the coven and its training. In most cases, though, students -- sometimes called novices or apprentices once they're confirmed on an initiatory path -- take First Degree after they have mastered the basics. In many Trads, it's up to the student to ask for initiation, often after a year and a day's training (lessons, participation in ritual, etc.)
Generally, people who take Second Degree have wider and deeper knowledge, and are authorized to teach at least certain elements of Traditional material. In many cases, Second Degrees may lead their own covens, under the supervision of their Initiators.
Third Degrees are normally expected to teach and lead covens on their own, and, when it's possible, to be active in their local neo-Pagan communities as well. In most Trads, a Third Degree priest/ess is considered fully ordained, and authorized to perform all clerical duties, including weddings and funerals.
Often, the color of Witch's Cord -- the belt s/he wears over her robe -- indicates what Degree s/he's attained in her Tradition. Mostly, Cords are red, white, and blue -- but the assignment of color to degree varies from Trad to Trad, and there are Trads that use other colors, too; some groups use a fourth color for apprentices and/or Elders. (The definition of Elder varies, but usually, Elders have been in the Craft for at least 10 years, and commonly 20+ years, and they're usually 50 or older.)
There are some Witches who collect Degrees: they either make up credentials that they think will impress other people (like the woman who was "seeking" the first time we met her, and "Third Degree Alexandrian" two or three months later!), or they get them by mail-order (figuratively or literally). (This doesn't mean that mail-order courses are "bad" or useless, only that they're not, by themselves, an adequate foundation for Initiation.)
The first sort of Degree collector is bogus: it takes time to study and earn a Degree, and most Trads don't count it possible to get all the experience you need from books or in a very short time: Wicca's a religion of experience! Pay enough attention to notice and avoid getting sucked in by people like that; they're either cons, or very insecure, and either way, its best to keep your distance (whether you're an individual or a group).
The second sort may have legitimate reasons for pursuing so many Degrees. We know several people who are initiated in more than one Trad, and more than one neo-Pagan religion, either/both because their interests have changed over the years and so that they can better educate the public. For them, it's no more suspicious than someone having a double major in college.
There's no need to start out cynical or skeptical about people's credentials, but do remember that, to paraphrase an old saying, "Degrees is as Degrees does," hmm?
(By the way, in many Trads, the proper religious title for a fully ordained Wiccan priest/ess is Lady or Lord. It sounds a little silly in ordinary conversation, and we don't generally use titles among ourselves. We don't use titles to glorify ourselves, but out of respect for the God/dess we serve, Wicca, and our roles as neo-Pagan clerics. When we are introduced to clergy of other faiths, they're Reverend or Father or Sister, and we're Lady or Lord.)