What Woodworth didn't realize is that a $500 card balance at the average interest rate of 16% can take nearly 3 years to pay off if only minimum payments are made. Even the minimums grew oppressive for Woodworth. The thought of the looming debt debilitated him: "I would stay up at night thinking about it," he says. "I couldn't get up in the mornings. I wasn't socializing, and sometimes I wouldn't eat, then other days I would eat too much. I felt totally alone."

Instead of tackling the debt immediately or asking for help, Woodworth procrastinated, letting the balance fester until it had spiraled out of control, and he had to return home. When that shiny new card came, he never read the fine print. "I should have read it, and I realize that," says Woodworth.

He didn't know that his interest rate could rise if he made a late payment, and then it did. He didn't know if he made a late payment on one account the rate on another card could be raised, and it was. And he didn't know that there are no regulations governing how hefty late fees can be. Then he got hit each month with a $39 wallop.

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Credit-card companies say that they put a heavy emphasis on financial literacy. They distribute materials and make information available online to help students become savvy consumers, while helping them to build a good credit score in the long term. "Each one of our new student account holders receives our Student Financial Handbook, an easy-to-use guide for understanding the basics of managing their finances, including how to balance a checkbook, how a credit card works, and so on," said Bruce Hammond, president of card services for Bank of America, in his testimony before the Senate earlier this year.

Long-term effects of mismanaged debt
But consumer advocates say such efforts aren't nearly enough. They contend that credit-card companies should be banned from marketing on college campuses, in the same way that tobacco and alcohol companies can't market to kids. "Education alone isn't going to solve the problem," says Plunkett,of the Consumer Federation of America. "Credit-card companies are subtly shifting the burden to students when they talk about credit education programs. The companies should not be targeting a population who are not in a position to handle credit wisely."

The learning curve with credit cards is steep, and there is little room for trial and error. Mistakes made in college can haunt students long after graduation. Their credit scores can have an impact whether they get their job of choice, whether they qualify for an apartment, and even whether they have to pay more to get their utilities turned on.

As for Woodworth, he is finally headed back to school this fall after two years away from campus. He has learned from his experience with credit, but the lessons have a bitter tinge. "If I could do it over again, I never would have gotten a credit card," says Woodworth.

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