A few med schools are said to consider graduate GPAs somewhat (i.e., just more than the typical med school)... but just a handful, and it's nothing you can count on. I was in a similar boat as your friend, except my undergrad cGPA was even lower (<2.7) and I already had two master's degrees that I knew wouldn't help my case (despite 3.68 and 4.00 GPAs), when I became interested in medicine, just because undergraduate GPA is such the focus for MD admissions. (My undergrad GPA had a strong but late upward trend, in which I finally made Dean's List one term and thereafter never got anything but As and Bs, but the problem was some Cs and a couple of Ds were already in from the first 2 years.)
So I put 3 years into an informal post-bacc, earning a 3.99 for the post-bacc (and, finally, pulling the cumulative undergrad GPA above 3.0), scored a 35 on the MCAT, racked up over 1000 hrs volunteering in healthcare, plus gained multiple, other paid clinical experiences, and... am still not likely to get into an MD program. I interviewed at two places though, this cycle. And if I don't get into anywhere yet again (this is my second cycle applying) then I should apply to DO schools too next time. Bottom line: It's not impossible, but, there's a lot to prove. You have to be 200% in. And it's not just about the numbers, but experiences/activities, and demonstrated/demonstrable motivation via essays, interview and LOEs, and the sensible selection of MD / DO programs to which you apply.
I would not be aiming for a 3.5+ grades hereafter but 4.0. In my experience, despite wanting to believe otherwise, a high MCAT does not really "balance out" a low GPA; it only makes it possible for some programs to consider your application in spite of your low GPA.
The MS program isn't a horrible idea in itself. Mine was also funded, and I did it because I was interested in the science. You friend should pursue it if s/he is sincerely interested in the program! But s/he should also realize what it can and cannot do for one's med school admissions prospects; e.g., it doesn't help the undergraduate GPA, but can still yield clout via publications, experience, and LOEs. Or maybe s/he will discover an interest in doing a Ph.D. instead. For me, I enjoyed the life of a research scientist, produced publications, attended conferences, and gained valuable research and teaching experience. It didn't/doesn't help my MD admissions prospects directly but it did help make me into a "real" scientist, which I strongly feel would make me a better physician. However, if your friend's goal is to improve his med school credentials, a post-bacc or SMP, as others suggest, would be the more appropriate investment.
