### Question
How does the law define line of credit?


### Answer
Under *42 U.S.C. § 292o*, **line of credit** is defined as:

> an arrangement or agreement between the lender and the borrower whereby a loan is paid out by the lender to the borrower in annual installments, or whereby the lender agrees to make, in addition to the initial loan, additional loans in subsequent years

#### Citation:
  - *42 U.S.C. § 292o*
  - Heading: **CHAPTER 6-THE CHILDREN'S BUREAU > SUBCHAPTER V-HEALTH PROFESSIONS EDUCATION > Part A-Student Loans > subpart i-insured health education assistance loans to graduate students**

