Parents and students can minimize the use of student debt.

These tips were provided by Howard Dayton, financial expert and CEO of Crown Financial Ministries.

Mr. Dayton also is author of a new book, "Free and Clear: God's Roadmap to Debt-Free Living" (Moody Publishers).

There are a number of vehicles to help families save for college:

State 529 plans -- investment plans operated by states designed to help families save for future college costs. The federal tax law provides special tax benefits. However, if the child does not attend college, federal law imposes a 10 percent penalty on earnings for non-qualified distributions. So, if the money is withdrawn for purposes other than college, the investor would receive 100 percent of the principal and 90 percent of the earnings.

The 529 plans usually are categorized as either savings or prepaid, although some have elements of both. One protects earnings from taxes. The other locks in current tuition rates. Educational institutions can offer a 529 prepaid plan, but not a 529 savings plan.

State prepaid-tuition plans allow families to pay for one or more years of future college tuition at current college prices, such as the Pennsylvania Tuition Account Program.

In this 529 guaranteed savings program, Pennsylvania residents acquire units that increase in value over time to track average tuition increases in one of several school categories as selected by the participant. Details vary for prepaid-tuition programs in other states.

Coverdell Tuition Savings Accounts -- created as an incentive to help parents and students save for education expenses, including higher, secondary and elementary education.

The beneficiary must be someone under age 18 or someone in the special needs category The total contributions for a beneficiary cannot be more than $2,000 in any year, no matter how many accounts have been established.

Distributions are tax-free as long as the money is used for qualified education expenses, such as tuition, books and fees.

If there is a balance in the Coverdell account when the beneficiary reaches age 30, it must be distributed within 30 days. Earnings will be taxed at 10 percent, but the taxes can be avoided by rolling over the full balance to another Coverdell account for another family member.

Roth IRAs -- Individual Retirement Accounts with tax advantages. Contributions are made only from earned income that already has been taxed. A big advantage of Roth IRAs is the ability to take certain early distributions without paying the early distribution penalty.

The withdrawals are tax-free if you're over age 591/2 and at least five years have expired since you established your Roth IRA. Otherwise, only the money you have contributed can be withdrawn tax-free. There is a penalty on the interest earned in the account if the interest is withdrawn early.

Students can help pay their own college bills and reduce the amount they borrowing by taking certain steps:

Work and save before college.

Work part-time while attending college.

Work full-time during breaks.

Take a year off from college to work and earn money. This might have implications, however, for health insurance because once a student falls below full-time student status, he or she usually loses coverage under parents' policies. Also, student-loan repayments begin six months after a borrower no longer attends college full-time.

Enroll at a less expensive junior or community college for the first two years.

Live at home while attending college.

Explore scholarships and grants.