There are many ways to partially fund an education to avoid student loans.  All these other sources of funding must taken into account when awarding the student a financial aid award.  The actual way these are taken into account will vary from school to school.  They typically involve work that the student does before or during college.  Though as part of the agreement you may have to work after college as well.

Americorp
Americorp is an organization where the student earns a minimal wage for working and another award that is not paid directly but that can be used for college.  The student works in the United States in most cases and may even be able to find Americorp in their neighborhood.
http://www.americorps.org/

Peacecorp
Peacecorp works much like Americorp but instead of working in the United States the U.S citizen goes to another high need country and works there.
http://www.peacecorps.gov/

Fellowships
Fellowships are a broad category where someone pays the student an award (usually when in college) in exchange for work done assisting in a research project as a lab assist or other similar task.  Fellowships are more common at the graduate level and much more common in the hard sciences.  Many fellowships may also require that after graduation the student work for several years for that organization.
Here is a link for scholarship and fellowship opportunities
http://scholarships.kachinatech.com/