Consider signing up for the online design contests such as worth1000 or the likes. Enter the contests, or at the very least use the contests as ideas for personal art. You could also find inspiration around you. If you see something that strikes a good idea, than put your idea on paper and begin refining it.

Or you could go ahead and design your friends site. Create the entire thing for practice, as practice is always a good thing. Then when it’s finished, present it to him and ask if he’d like to buy it. Whether he does or doesn’t, ask him if he would mind if you used it in your portfolio.

You could also check with the the head of the design department, or your instructors. You would be surprised at how many jobs they either turn down or give to students because they prefer teaching over freelancing, or simply don’t have the time. Almost all of them are willing to pass a job onto one of their students and arrange for the client to pay “student pricing”. This is not only a way to get money for your designs, but also helps you learn to network and have a respected mentor in the design community vouching for you.

I can assure you that charging anyone “free” is always bad. When you finally do graduate, those clients will likely return, or spread the word that you are free. Instead, consider “student pricing”. There are several sites you can find on google, and even books you can buy that will guide you on how to compare student pricing to professional pricing – such as what the mark-down would be, what a good base price is, and what the client should be expected to pay. Simply because you are a student doesn’t mean your artwork is worthless. Don’t sell yourself short – and free is ALWAYS short selling.

Really learned a lot by just reading this. Couldn't agree with you more about typography, i have been struggling to get my type right and usually ended up doing the last thing in the design which results in type not matching the design. I will be focusing more om my type in the next design

Thanks for sharing such a great insights!

If you're in school and you don't want to charge a friend, then look at it as an opportunity to gain a portfolio piece for graduation. If you're not a student, then use the opportunity to have a portfolio piece to show prospective clients. It's hard to charge full price when the degree doesn't yet have your name, but if your work is really good, then it will speak for itself. If you're having trouble deciding what is a reasonable rate, you can ask working designers what they charge and weigh that against the work you do and the experience you have in the field.

Also, there is one last possibility: design the website for free, but tell your friend that if there is anything else they want from you, like merch designs or album covers, you can charge for the time you spend on those products. If the site works, then you are definitely worthy of compensation!

(I know that you asked for the author to respond, but I felt the need to answer as well. I hope it helped a little :) )