SEC. 2. ISSUANCE OF CREDIT CARDS TO CERTAIN COLLEGE 
STUDENTS. 
Section 127 of the Truth in Lending Act (15 U.S.C. 
1637) is amended by adding at the end the following new 
subsection: 
‘‘(i) PROVISIONS APPLICABLE WITH REGARD TO THE 
ISSUANCE OF CREDIT CARDS TO FULL-TIME, TRADI-
TIONAL-AGED COLLEGE STUDENTS.— 
‘‘(1) DEFINITIONS.—For purposes of this sec-
tion, the following definitions shall apply: 
‘‘(A) COLLEGE STUDENT CREDIT CARD AC-
COUNT DEFINED.—For purposes of this sub-
section, the term ‘college student credit card ac-
count’ means a credit card account under an 
open end consumer credit plan established or 
maintained for or on behalf of any college stu-
dent. 
‘‘(B) COLLEGE STUDENT.—The term ‘col-
lege student’ means an individual— 
‘‘(i) who is a full-time student attend-
ing an institution of higher education; and 
‘‘(ii) who has not yet attained the age 
of 21. 
‘‘(C) 
INSTITUTION
OF
HIGHER
EDU-
CATION.—The term ‘institution of higher edu-
cation’ has the same meaning as in section 
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101(a) of the Higher Education Act of 1965 
(20 U.S.C. 1001(a)). 
‘‘(2) MAXIMUM AMOUNT LIMITATION AS A PER-
CENTAGE OF GROSS INCOME.—Unless a parent, legal 
guardian, or spouse of a college student assumes 
joint liability for debts incurred by the student in 
connection with a college student credit card ac-
count— 
‘‘(A) the amount of credit which may be 
extended by any one creditor to the full-time 
college student may not exceed, during any full 
calendar year, the greater of— 
‘‘(i) 20 percent of the annual gross in-
come of the student; or 
‘‘(ii) $500; and 
‘‘(B) no creditor shall grant a student a 
credit card account, if the credit limit for that 
credit card account, combined with the credit 
limits of any other credit card accounts held by 
the student, would exceed 30 percent of the an-
nual gross income of the student in the most 
recently completed calendar year. 
‘‘(3) PARENTAL APPROVAL REQUIRED TO IN-
CREASE CREDIT LINES FOR ACCOUNTS FOR WHICH 
PARENT IS JOINTLY LIABLE.—No increase may be 
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made in the amount of credit authorized to be ex-
tended under a college student credit card account 
for which a parent, legal guardian, or spouse of the 
consumer has assumed joint liability for debts in-
curred by the consumer in connection with the ac-
count, before the consumer attains the age of 21, 
with respect to such consumer, unless the parent, 
guardian, or spouse of the consumer, as applicable, 
approves in writing, and assumes joint liability for, 
such increase. 
‘‘(4) INCOME VERIFICATION.—For purposes of 
this subsection, a creditor shall require adequate 
proof of income, income history, and credit history, 
subject to the rules of the Board, before any college 
student credit card account may be opened by or on 
behalf of a student. 
‘‘(5) PROHIBITION ON MORE THAN 1 CREDIT 
CARD ACCOUNT FOR ANY COLLEGE STUDENT.—No 
creditor may open a credit card account for, or issue 
any credit card to, any college student who— 
‘‘(A) has no verifiable annual gross income; 
and 
‘‘(B) already maintains a credit card ac-
count under an open end consumer credit plan 
with that creditor, or any affiliate thereof. 
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‘‘(6) EXEMPTION
AUTHORITY.—The Board 
may, by rule, provide for exemptions to the provi-
sions of this subsection, as deemed necessary or ap-
propriate by the Board, consistent with the purposes 
of this subsection.’’. 
SEC. 3. REGULATIONS REQUIRED. 
Not later than 180 days after the date of the enact-
ment of this Act, the Board of Governors of the Federal 
Reserve System shall prescribe such regulations as may 
be necessary to carry out section 127(i) of the Truth in 
Lending Act, as added by this Act. 
Æ 
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