The basic idea is to create a PARENT column that tracks which item a given item belongs to. (Items with parent=0 are at the root level.) For example:
create table hierarchy
(
id int, / auto-increment as provided by your dbms /
parent int,
item text
);
ID | PARENT | ITEM
----+---------+-----
001 | 000 | Bachelors
002 | 000 | Masters
003 | 001 | BSC
004 | 002 | MSC
etc.
But now that I've done this, I don't think this is really what you want. You don't have indefinite levels, and--more to the point--undergrad/grad school is not the same kind of information as the name of the degree programs, so these two things don't belong mixed in the same table, anyway. Try this:
division:
id
name
degree:
id
div_id / references division.id /
name
Now you have:
division:
ID | Name
-----+------
001 | Undergrad
002 | Masters
003 | Doctoral
degrees:
ID | DIV_ID | Name
-----+--------+-----
001 | 001 | BSC
002 | 001 | BBA
003 | 002 | MSC