Apple has created instructions on how to setup a free iTunes account without requiring the use of a credit card. You can accomplish this right on the iPad (look at the second section of the page).
I have also created step by step instructions with screenshots. Take a look below:
1. Open the "Settings" app
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337374177427/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2017%2C%204%2045%2039%20PM.jpg)
2. Select "Store" on the left and, if you see an email address already in the "Apple ID" section, tap it. If not, skip to step 4
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337374254041/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2017%2C%204%2046%2046%20PM.jpg)
3. Tap "Sign Out"
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337374360171/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2017%2C%204%2048%2001%20PM.jpg)
4. Open the "App Store" app
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337374443175/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2017%2C%204%2049%2045%20PM.jpg)
5. Find a free app and tap the "Free" button
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337441135094/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2017%2C%204%2051%2059%20PM.jpg)
6. Tap the "Install app" button
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337441202088/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2017%2C%204%2056%2025%20PM.jpg)
7. Tap "Create New Apple ID"
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337441311370/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2017%2C%204%2057%2049%20PM.jpg)
8. Tap "Next"
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337441403418/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2017%2C%204%2058%2018%20PM.jpg)
9. Scroll down to the bottom of the agreement and tap "Agree"
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337441482182/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2018%2C%202%2004%2021%20PM.jpg)
10. Tap "Agree" again
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337441579414/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2018%2C%202%2004%2052%20PM.jpg)
11. Enter your BSD email address and choose a password. Note Apple's requirements for your password
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337441683258/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2018%2C%202%2006%2040%20PM.jpg)
12. Scroll down and choose three security questions and answers
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337442284024/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2018%2C%204%2027%2000%20PM.jpg)
13. Scroll down and enter a "Date of Birth" and then tap "Next"
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337442370420/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2018%2C%204%2027%2042%20PM.jpg)
14. Tap "None"
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337442499045/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2018%2C%204%2028%2015%20PM.jpg)
15. Even though you are creating the account without choosing a credit card, Apple still requires you to enter your name, address and phone number. You can always enter the address and phone number of your school. Scroll down and enter your name, address and phone number, then tap "Next"
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337442681996/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2018%2C%204%2029%2010%20PM.jpg)
16. An email will be sent to the email address you entered earlier in the process. Tap "Done"
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337442873102/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2018%2C%204%2030%2009%20PM.jpg)
17. Using a computer (it's easier), go to your BSD email and look for the verification email from Apple. Follow the directions to verify your new Apple ID/iTunes account.
18. Once you've successfully verified your Apple ID/iTunes account, open the "Settings" app
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337443178188/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2018%2C%204%2032%2015%20PM.jpg)
19. Select "Store" on the left and tap "Sign In"
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337443398183/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2018%2C%204%2032%2057%20PM.jpg)
20. Tap "Use Existing Apple ID"
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337443463974/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2018%2C%204%2033%2037%20PM.jpg)
21. Enter your new Apple ID and password
![create an itunes User account without credit card create an itunes User account without credit card](http://technology.bsd-ri.net/_/rsrc/1337443535192/ipad-tips/create-an-itunes-account-without-a-credit-card/Photo%20May%2018%2C%204%2034%2015%20PM.jpg)
Now, you are all set to use your new iTunes account/Apple ID to find and install free apps from the App Store on the iPad/iphone/ipod