### Question
How does HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE define line of credit?


### Answer
Under *20 U.S.C. § 1085*, **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:
  - *20 U.S.C. § 1085*
  - Heading: **CHAPTER 28-HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE > SUBCHAPTER IV-STUDENT ASSISTANCE > Part B-Federal Family Education Loan Program**

