Student Loan Abuse Prevention Act of 1989

[AI summary unavailable — showing source text] Student Loan Abuse Prevention Act of 1989 - Amends the Higher Education Act of 1965 (the Act) to authorize the Secretary of Education (the Secretary) to take emergency action to suspend disbursement of funds to an eligible institution under title IV (Student Assistance) of the Act, to prevent misuse of funds under specified circumstances. Directs the Secretary, whenever eligibility of an institution has been terminated, to: (1) carry out a program review of each affiliated and successor institution; and (2) if any such institution is committing similar violations, carry out a proceeding to limit, suspend, or terminate eligibility or take emergency action suspending disbursement of funds. Terminates the effectiveness of any program participation agreement with an institution after it undergoes a change of ownership resulting in a change of control, if the Secretary determines that the new owner, a member of the new owner's family, or a current business associate of the new owner was substantially involved in the ownership or administration of another institution that has: (1) been limited, suspended, or terminated by the Secretary; (2) declared bankruptcy; (3) failed to pay the Depa…