It might, but will not in this case. Why the graduate did not file for a change of status to some other nonimmigrant visa, let's say b1? In this case the graduate's state might have been rendered authorized by the AG.
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The overstay will be an issue to be overcome in future visa applications.
J Charles Ferrari Eng & Nishimura 213.622.2255 The statement above is general in nature and does not constitute legal advice, as not all the facts are known. You should retain an attorney to review all the facts specific to your case in order to receive advise specific to your case. The statement above does not create an attorney/client relationship. Answers on Avvo can only be general ones, as specific answers would require knowledge of all the facts. As such, they may or may not apply to the question.