My cousin just finished her first semester at a large law school in Washington, D.C. Before our holiday dinner, she remarked, You know, I'll have $200,000 in student debt by the time I'm done with my JD. And, she's not alone.

According to a 2005 survey by The College Board titled, Trends in Student Aid, 66.4 percent of college students incurred significant debt prior to graduation. A Feb. 2006 article in USA Today stated that the average amount of debt a student will incur has increased by 50 percent over the past 10 years.

So, what can an average undergrad or graduate student do to avoid racking up excessive, unwanted debt during the education process? Several things:

Spend the least amount possible on education

The first step to cutting college debt costs is to spend as little as you can during school. With quips such as College is the best four years of your life nearly ubiquitous in modern America, it can be easy to justify unnecessary expenditures as part of the fun. However, when the student loan payments and credit card bills trickle in after graduation, suddenly, spending lots of money doesn't seem like so much fun anymore.

If you're taking out loans, consider whether a public or a private school will best fit your needs. Public schools tend to cost less, and the education you'll receive is likely to be just as good as any you'll receive at a big-name, elite college. However, private schools usually give out more generous aid packages (though the application criteria can be rather competitive). Before choosing a loan package, calculate how much you'll need to borrow, and consider loan interest rates. Check out www.finaid.org, the official Web site of The Smart Student Guide to Financial Aid, for more details. The site includes helpful calculators for your financial planning ease.

If you were an academic superstar, or if you've had a unique path leading up to your college education, consider applying for scholarships. Public and private schools, both, give out scholarships for academics, sports, and writing skills. Lesser-known scholarships are also awarded to individuals who are members of particular religious or ethnic groups or, to those who've had personal or life experiences that build character. Fastweb.com offers information about scholarships of all types. Register for an account on this Web site and explore your scholarship options.

Whittle down your living expenses

During school, consider forgoing the dorms. Room and board costs can comprise a significant portion of your college expenses, and there are often cheaper options. Living at home is one -- but only if you attend a school in or close to your hometown. Students who forgo rent and bills completely can save major money during college. Renting a cheap, off-campus apartment with some friends is another good bet (one you'll have to forgo if you're attending a school that does not allow off-campus living) and can work even if you're attending college outside the area in which you grew up. Check out CraigsList.org or your school's office of student affairs to find roommates in your college town.

If your parents can't help you foot tuition bills, you might want to consider supplementing your loan funding with part-time work. Most colleges sponsor work-study programs, which offer low-stress jobs for students who meet certain income and savings qualifications. These jobs are often pleasant, allow you to meet more people at your school, and typically pay higher wages than traditional student jobs. Your campus employment center can help you find a work-study job or a traditional student job that fits your needs and complements your school schedule. Or, you can work off-campus restaurant, bartending, retail, and phone bank gigs all net great income for students. Consider working full-time during the summer, if it will fit into your schedule. A summer job is a great way to save additional precious dollars that you can use during the semester.

Finally, avoid credit cards, if at all possible. Credit cards are not free money. You are purchasing something using credit now, and will pay the price for your purchase, plus more money on top of that, later on. Many students have short or non-existent credit histories, so they are much more likely to be charged higher interest rates on credit card purchases. And, many students have trouble meeting credit card payments each month, on top of their other expenses. The consequences can be devastating: Students can amass gargantuan late fees, and the missed payments will adversely affect their credit scores, making future, major purchases such as homes and cars difficult to secure at low interest rates.

College is one of the most exciting new chapters in your life. And, with careful planning, you can make it one of the most financially savvy times, as well.