Over half of American college students last year took out some type of student loan in order to pay for their higher education costs.  While many financial advisors consider this to be “good” debt, student loans are the only debt, besides certain IRS tax liens, that cannot be discharged in a bankruptcy.  Therefore, it is very important to minimize the amount that you borrow while in school. 

Ideally, you should borrow no more than your first year’s salary after you graduate.  Your school’s alumni office should have good statistics on the average amount a graduate from your degree program makes after graduation.  By putting yourself in debt for a higher amount than this, you greatly increase your odds of not being able to repay your loan.  Reducing your debt, however, can be very difficult.  Below are a few suggestions to help you out.

1. Calculate the total amount you will need to borrow in order to earn your degree.  Ideally, do this as soon as you get your financial aid reward letter.  Too many students only look at the amount they will borrow each semester, and fail to realize what it will add up to.  Before you can make any important decisions, you have to know your bottom line.
2. Choose a major and make your class schedule.  The most expensive decision that I see students make is picking a college without choosing a major.  Spending a year or more taking (and paying) for classes without knowing your end goal becomes very expensive.  Planning out your class schedule for your entire degree is essential if you go to a small college or if you are in a small degree program where not every class is offered ever semester.  Failing to take a pre-requisite can result in waiting up to a year before getting to take other essential classes.  During that time, you’re paying tuition for classes you don’t need.     
3. Get a job and avoid taking out loans for your living expenses.  Granted, this is easier for some majors than others, but there is usually something you can do to bring in a bit of extra money (refer to http://quazen.com/kids-and-teens/college-life/ways-to-earn-money-while-in-college/ for advice).  Taking out money to pay for your living expenses doesn’t force you to learn how to budget your money (why worry when you can always take out another loan?). 
4. Ask for waivers on “mandatory” fees.  Some colleges will let you appeal the “extracurricular activities fee” if you work or if you live off-campus.  Since these fees are often included with your tuition bill, this is money you won’t have to borrow.  None of them advertise this option, though.  Ask your bursar’s office and your financial aid office to find out if this could work for you.
5. Apply for scholarships every year.  If you’re like most freshmen, you applied for a slew of scholarships from private organizations your senior year of high school, and received very little for your efforts.  Most schools, however, have scholarships specifically designed for upperclassmen.  At some schools, these scholarships have very few people applying, so your chances of getting one are better than when you applied as a freshman.
6.  Research loan forgiveness programs.  Joining the Peace Corps or teaching in a low income neighborhood for a few years are eligible ways to have the federal government forgive your government loans.  In a bad economy, these types of positions can provide you with a paycheck and good experience.
7. Avoid “study abroad”.  Unless you have the cash, that is.  Most study abroad programs say they cost as much as a semester of tuition, but fail to mention incidentals such as transportation, food, and lodging.  If you really want this experience, consider work abroad programs, joining the Peace Corps, or talk to your professors about special summer programs with a volunteer or work element that can reduce the overall cost.