After a bit of probing, he came out with the real reasons. He didn't want to search for a job here (his exact words, "Jobs are too hard to get now. So, why bother to search? I'm happy in grad school. Let me be here!"), he didn't want to go back to India and take up a job and he didn't even want to think of doing an internship or part-time gig. So, I said that he should atleast give some thought to a PhD in his field for once he has decided to study more, why not do a doctorate? That would in fact help him get deeper into whatever he is doing right now. For it, his answer was "But research is too hard!". That, in one word, sums up to not wanting to take up responsibility.
After discussing with him for ten more minutes, I found that he felt safer in grad school, he didn't have to face the realities of life(job search, recession, etc.), he preferred to be a college student all his life(not unlike Aamir in RDB), he didn't want to really try out anything at all. But if you look at his activities, he would be the first person, ready to try out all types of activities from camping to football to volunteering. I found a totally disconnected profile of him where he was uber-confident in smaller things in life but not so in the larger things in life. My heart filled with pity for him. He was afraid of his own shadows. No amount of pushing and prodding by others would help him out of his misery.
In fact, what would life do to you? Worst, you'd know that you died trying to reach your dreams. But if you decide not to even step out of your comfort cocoon, then dreams would just be wishful thinking. Heck! You wouldn't even know if there was a BETTER comfort cocoon than the one that you are in right now. And best, you'd have achieved all that you set out to do and would think, "Did I get scared for this simple thing?". So, go ahead, try things out! You have but one life to do it all!