By Anita Miller

San Marcos — No more free T-shirts.

At least, not for college students who sign up for a credit card, not after February of next year.

That’s when the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 takes effect. Among other measures, it prohibits credit card companies from soliciting student business on or near college campuses or of offering any promotional item in exchange for a new card application.

It also bans anyone 21 and under from getting a credit card without a co-signer, who would be someone over 21 with a good credit history. Minor card holders will also need parental approval for an increased credit limit.

Much touted for provisions that apply to card holders of all ages — such as requiring lenders to issue warnings before raising rates and outlawing the process of penalizing card holders who make payments on time — CARD takes special steps to protect young people, said officials at Texas State.

“This legislation will insure that credit card companies will uphold basic standards of fairness, transparency and accountability,” said Kimberlee Davis, Ph.D., assistant professor of Consumer Science and director of Money Savvy Cats, the university’s financial literacy program.

Under another provision of the legislation, institutions of higher learning are still allowed to market alumni or other college-related cards but must disclose their relationship to the credit card company.

Also, beginning in February, card holders will receive their bills 21 days before the due date as opposed to the current window of 14 days. Companies would also have to give a 45-day notice before making changes to the agreement.

While it’s not known how many Texas State students use credit cards, Davis provided results of a 2007 study at Buffalo State College indicating “one-third of students reported having two credit cards or more, while 12 percent had three or more credit cards,” and that “College students carry an average of $1,035 in credit card debt.”

The same study also indicates many college students overrate their future financial status. “Many students believe they will make much more money after college than they will actually learn.”

That study and others have shown that the financial behavior of many students is shaped by what they learned, or didn’t learn, from their parents.

For example, according to Charles Schwab in 2008, “Only about one in three parents (34 percent) has taught their teen how to balance a checkbook, and even fewer (29 percent) have explained how credit card interest and fees work.”

Money Savvy Cats is designed to pick up where parents might have left off. Its Web site offers a variety of online courses, designed to be completed in 20 minutes or so, on topics including budgeting and financial planning, overspending, protecting credit, setting financial goals, saving money and more.

The site also has a Budget Wizard and Financial Calculator.

Last week, a presentation on Money Savvy Cats was given to new freshmen but according to Sarah Harborth, who works with Davis, a push is underway to have an overview of the program become a part of routine orientation for all incoming freshmen and transfer students.

And, they point out, the program is even ahead of its time, as the CARD legislation also directs colleges and universities to offer credit card and debt counseling.

The site is http://www.vpsa.txstate.edu/moneysavvy.