The Spanish graduate’s island (4)
I believe the answer is:
elba
'island' is the definition.
(Italian island)
'the spanish graduate's' is the wordplay.
'the spanish' becomes 'el' ('the' in Spanish).
'graduate' becomes 'ba' (someone with a Bachelor of Arts degree).
'el'+'ba'='ELBA'
(Other definitions for elba that I've seen before include "Napoleon's plaint: 'Able was I ere I saw . . . .'" , "Island in the Med" , "Napoleon exile island" , "Napoleon prison isle" , "Island of imperial exile" .)