Graduate to a better camera
Sony Cyber-shot DSC-RX100
If you're sending your grad out on a post-school vacation, this is a great compact camera that's a reward for hard work.
Liquid Image Ego
The Ego is a capable little POV action cam with built-in Wi-Fi that lets you use a smartphone or table to control it and give you a live view of what the camera sees.
Like the Liquid Image Ego, the Roam2 is pretty much a point-and-shoot action camera. However, the Contour's advantage is its waterproof body, which keeps it protected down to about 3.3 feet.
Canon PowerShot SX260 HS
An excellent camera for travel (though you'll want to get a couple extra batteries for it), the SX260 HS is nice for both casual and experienced shooters looking for excellent photo and movie quality, and its 20x zoom lens covers a lot of range.
The WB250F is a solid step-up camera for smartphone photographers without completely losing the easy sharing capabilities of an always-connected mobile device.
A nice first SLR that won't break the bank, the Nikon D3200 is a good entry point for budding photographers.
Sony Alpha NEX-6
For a grad who's an advanced photographer or just wants something better than a point-and-shoot but doesn't want the bulk of a dSLR, the NEX-6 is a great choice.