Should colleges?
Usually this is handled by specialized services that also translate transcripts. Given that there are a great many languages, I believe it would be unwise for schools to seek to make accurate translations and arrange for diplomas using a wide variety of alphabets. The opportunity for errors, which would embarrass the school and the graduate are significant, and the complexities of printing unique diplomas in foreign scripts would be an unwelcome burden. Think of English (or Latin which most people cant read or understand) as providing a unique quality that suggests you are a person of the world. The reason Latin is used is similar to suggest a perhaps pretentious claim to great learning.