What rising student-debt numbers mean for you

The numbers sound as grim as any financial report since the 2008 economic downturn: Two-thirds of college seniors graduated with debt in 2010. Average loan amount: $25,250. But read between the lines, and you can find a rosier picture of what to expect from your own college balance sheet.

A closer look at the 2010 Student Debt report

The Project on Student Debt released headline-grabbing numbers in its November 2011 report "Student Debt and the Class of 2010." Even as unemployment for recent college graduates soared to an historic 9.1 percent in 2010, the average debt load increased 5 percent that year.

But a college degree doesn't have to land you $25,000 in the red. This debt average conceals huge disparity in what graduating seniors owe individually. Although the majority of students take out loans, the amount varies widely by school, with campus debt averages ranging from $950 to $55,250. The good news: Fewer than 10 percent of schools come in at the high $35,000 average student debt level (98 of 1,067 institutions). The share of students in debt also varies from campus to campus, from just 2 percent to 100 percent. Again, only 73 schools report a borrower percentage of 90 percent or higher.

Buyer beware: Finding the best value in college education

Choosing the right school can be key to managing student debt. Unfortunately, shopping for the best value in higher education is not as easy as pricing different brands of cereal in the supermarket aisle. If variable tuition rates and fees weren't complicated enough, each school also features different financial aid policies and need-based grant programs. Regional cost of living differences can also impact your total cost of attendance.

Careful consideration of individual school data and The Project on Student Debt's national survey results can help you find the best value. The foundation publishes campus-level data on student debt, enrollment, tuition and fees for public and private non-profit four-year colleges on its interactive map.

You can also find affordability metrics by school, region or state, nation and year at The Project on Student Debt's College-Insight.org.

Vetting the data for your college search

The Project on Student Debt ranks individual schools based on average student debt and other metrics. But as the study's authors observe, this ranking is not shorthand for a school's affordability. A more affordable public university will attract more students in need, for example, so state universities often rank high in number of students with financial aid. The colleges with the lowest debt per borrower, meanwhile, include both low-tuition public universities and high-tuition (some charging over $30,000 in tuition alone) private schools with large endowments.

To make use of the Student Debt report data, put it in context. In addition to the average debt amount, you need to know:

What kind of debt are students taking on? Federal loans are much safer than private loans, offering low interest rates. According to Federal Student Aid, the 2011-2012 subsidized Stafford Loan interest rate is 3.4 percent and unsubsidized is 6.8 percent. By contrast, private loans can reach 20 percent interest. Even though there is broad consensus that private loans should be a last resort, say Student Debt study authors, the majority of private loan borrowers have not exhausted their federal loan entitlement.

What is the "net price" of the school? The tuition may be high, but so is the grant aid for needy applicants. Net price is the total cost of attendance minus the grants and scholarships for which you may be eligible. To compare schools, look to the net price calculator required on all college websites since October 2011. The calculator estimates your individual cost of attendance, taking into account tuition and fees, books and supplies, living expenses and transportation as well as financial aid. Learn more about the reliability of college cost calculators at TheDegree360.

What are the student demographics? A demographic snapshot of the student body can help you interpret a school's average debt profile. For example, you can get a sense of a school's commitment to low-income students by researching the percentage of need-based Pell Grant recipients, available through College-Insight.org. A high level of Pell Grant support correlates with commitment to economic diversity--an important qualifier if you are considering a school with a high level of students carrying debt.

Average student debt may be on the rise, but with wise college financing decisions you can keep your student debt in check.

More From TheDegree360:

Financial aid experts uncertain about new college costs website's usefulness
Rising student loan debt levels lead some to question the value of college degrees
Congress mulls relief options for student loan debt