At the end of undergrad my truck was getting pretty noisy and I got the '400.00 replace everything' quote too. Of course it was probably the best thing but with an old vehicle and little money to go around I checked into other options. Turned out Canadian Tire sold exhaust systems piece by piece, so much for each section. They also rented the cutting tool for free (that 4 disc deally) and of course had all the adapters, clamps, etc as needed.
So I crawled underneath the truck in the CT parking lot, cut out the rotten bit, spliced the new piece in and was on my way. That was over four years ago, it's still holding up fine. Checking back into the records the muffler, rear exhaust pipe, gasket and various fittings cost me about eighty bucks.