As students gear up for a new school year, fewer students are using credit cards to purchase school supplies, thanks to new legislation put in place under the Credit CARD Act passed last year, according to MarketWatch.com.

Under the new laws, credit card issuers are no longer allowed to offer students who open up a credit card- awkward rewards. such as free food, t-shirts, water bottles or backpacks. Additionally, people under 21 cannot open a credit card account without a co-signer or written proof that they will be have the income to make regular payments.

Parents who elect to become a co-signer on their child's card should take caution, as it can have a negative impact. "It can turn into a situation where the co-signer is affected by the [student's] non-payment," Jonathon Joy, a credit counselor with Advantage Credit Card Counseling Service, told the news source. "It's all based on whether your co-signer is up to taking on that responsibility."

Many Americans find themselves saddled with large amounts of credit card debt every year. According to CardRatings.com, some students are forced to drop out of college or pick up an extra job in order to pay off mounting debt.