Graduate school is an investment in your future, but recent changes to federal student loan programs mean students may need to think differently about how they pay for their education.
Fortunately, Southern Connecticut State University offers a resource that few colleges and universities have: a dedicated financial literacy professional whose sole focus is helping students make smart financial decisions before, during, and after graduate school.
Lewis DeLuca, director of Student Financial Literacy and Advising, works one on one with students to develop personalized financial plans that minimize debt while helping them earn their degrees. Unlike a traditional financial aid office, which focuses on processing aid applications and awarding funds, DeLuca’s office takes a broader approach. He helps students understand how to pay for graduate school strategically—considering scholarships, savings, payment plans, responsible borrowing, and long-term financial goals.
“My goal is to create a financial plan for every student who needs one,” DeLuca says.
That mission has become even more important as new federal borrowing limits under the One Big Beautiful Bill Act (OBBBA) took effect on July 1, 2026.
While the legislation reduces access to some federal loan programs, DeLuca believes it also encourages healthier financial decision-making.
“The goal,” he says, “is hopefully less borrowing and more grants, scholarships, savings, earnings and payment plans.”
One of the biggest changes affects the Graduate PLUS Loan. Beginning July 1, new borrowers are no longer eligible for the federal Graduate PLUS program. However, graduate students who complete the FAFSA can still borrow up to $20,500 annually through the Federal Direct Unsubsidized Loan.
For most Southern graduate students, DeLuca says, that amount is enough to cover tuition and mandatory fees during the fall and spring semesters. Students who also enroll in summer courses, however, may find the annual federal loan limit falls short.
That’s where individualized planning becomes especially valuable.
Rather than automatically recommending additional borrowing, DeLuca helps students evaluate every available option. Together, they explore whether savings, employment income, scholarships, Southern’s monthly payment plan, or other resources can reduce the amount that needs to be financed.
Only after those options have been considered does he recommend looking at additional loans.
“Borrow what you truly need,” he advises. “Pay out of pocket what you can manage. Don’t overborrow.”
For students who do need additional financing, Connecticut now offers a new alternative. The Connecticut Higher Education Supplemental Loan Authority (CHESLA) recently introduced the MyCHESLA Grad Loan to replace the discontinued Graduate PLUS Loan. DeLuca notes that the loan offers lower interest rates than the former federal program, charges no origination fees, and is available across graduate and professional degree programs.
Another significant change affects students enrolled part time.
Under the new law, graduate loan eligibility is prorated according to enrollment. Previously, part-time graduate students could sometimes borrow the full annual federal loan amount—even if their tuition costs were substantially lower—resulting in refunds that increased overall debt. Going forward, borrowing limits will more closely reflect a student’s course load.
Federal repayment has also been simplified. Borrowers now generally choose between a standard repayment plan, with repayment periods ranging from 10 to 25 years depending on the amount borrowed, or the new Repayment Assistance Plan (RAP), an income-based option that provides loan forgiveness after 30 years of qualifying payments.
For DeLuca, however, paying for graduate school is only one part of financial literacy.
“Financial literacy is really three things,” he says. “Budgeting, credit, and investing.”
Graduate students often juggle coursework with careers and family responsibilities, making budgeting skills especially important. DeLuca also helps students build and maintain strong credit—reminding them that “your FICO score is your financial GPA”—and encourages them to begin investing early through tools such as Roth IRAs and high-yield savings accounts.
The goal is not simply graduating with a degree, but graduating with the financial knowledge and habits that will support a lifetime of financial success.
Graduate students can meet with DeLuca to discuss paying for school, borrowing strategies, repayment options, budgeting, credit, investing, or virtually any other money-related question. Appointments are available in person, virtually, or by phone.
For students navigating today’s changing financial aid landscape, that kind of personalized guidance is uncommon. At many institutions, these conversations fall to already busy financial aid offices. At Southern, students have access to a dedicated financial literacy expert whose success is measured not by how much students borrow, but by how confidently they can manage their financial futures.
As DeLuca puts it, financial literacy isn’t just about getting through graduate school—it’s about learning to manage your money for the rest of your life.
