### Question
How is the "line of credit" defined?


### Answer
The term **line of credit** is defined in *20 U.S.C. § 1085* as follows -

> 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:
  - *20 U.S.C. § 1085*
  - Heading: **CHAPTER 27-NATIONAL VOCATIONAL STUDENT LOAN INSURANCE > SUBCHAPTER IV-STUDENT ASSISTANCE > Part B-Federal Family Education Loan Program**

