Also, can my friend, who overstayed his visa, apply for the green card lottery? He is in the USA too.
Anyone can apply for the DV lottery. Your friend, however, will not be able to adjust status even if he/she wins because you need to be in valid non-immigrant status at the time you file your I-485 application after 1 October 2013. Good luck!
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You may apply for a Diversity Visa while maintaing your legal status, however, your friend with undocumented status rendered himself ineligible for the same.
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