THOSE 18-YEAR-OLDS arriving on college campuses throughout teh country may be "freshmen" to most of us but they're "fresh meat" to credit-card companies.


Expect to see a plethora of booths on campuses offering T-shirts, food, and Frisbees to students willing to sign on the dotted line. And while for some what's in their wallet isn't a problem, for others the temptation to use credit too freely is simply irresistible.


According to lender Nellie Mae, 76 percent of students started the 2004 college year with at least one credit card and with an average of $2,169 in debt--already. Sometimes parents even encourage them to carry a card for "safety" purposes--not always a bad idea. But according to the American Council on Education, 25 percent of students use plastic to pay tuition.


The problem is students often aren't savvy enough about money to understand how credit works--the "magic" of compound interest is still a mystery. Late fees don't compute. And the hole that four years of credit spending can put in future income isn't even a glimmer on the horizon.


Credit-card companies make their offers alluring by featuring the students' college designs, assessing no annual fee, and setting a zero percent interest rate for the first six months. But those pretty cards can be poisonous: That zero percent can zoom to 17 percent to 18 percent interest in six months. Before long, a student's debt load can become overwhelming. In fact, easy college credit may be one reason why young adults are one of the fastest-growing segments of the culture to file for bankruptcy. And now that bankruptcy rules have been tightened, even that relief valve may not be available.

Follow up:

The bottom line? If Joe College decides he needs a credit card, experts say he should look for one with a low interest rate after the initial sign-up period. Better yet, he should commit to paying the balance off--on time--every month and never loan it to friends. Parents should insist that it be an online account with a shared password so they can keep track of balances; that kind of accountability will help avoid many problems later.


Nearly half of the states are considering or have passed legislation to restrict credit-card solicitations on campus. In 1999, the Virginia General Assembly passed a resolution requesting institutions of higher learning to provide consumer credit information to college students and their families. That may be just more easily ignorable "yada yada" to first-year students heady with freedom. But wise parents will take action to warn of the credit trap--before it snaps shut on their kids.


Related Articles: New Credit Card for Those without Credit | Some Students Add Debt With Credit Cards, Report Says | Study Tracks Student Use of Credit Cards