I've been on many interviews and since I completed my degree much later in life the year of graduation is newer than my older self. I do get the "over-qualified" all the time. As far as being over-qualified and as to a reason to apply for a job, with the economy today a job is a job and if you have to start at the bottom and move up -- well that's the way to go. I've asked why bother wasting time interviewing from the outside when they are planning to hire/promote from within -- and was told that they want to see what they can get from the outside. Others tell me is "who you know". Getting hired is just hard - hang in there.