Sen. Elizabeth Warren isn't letting up on Sallie Mae and how theNewark, Del.-based student lender may be benefitting from an inexpensive Federal Home Loan Bank creditline. The Massachusetts Democrat and consumer protection championsent Sallie Mae President/CEO Jack Remondi a letter Friday that compared the lender's use ofthe funds to how big banks benefitted from TARP funds.

When Warren served as chair of the Congressional Oversight Panelfor TARP, she said she learned that government cash infusions intoprivate companies, along with direct and indirect subsidies, canraise complex questions about which activities are being supported. Additionally, she saidshe learned to question whether companies receiving assistance arebeing entirely forthright in its description of the impact of suchsupport.

“While I understand one of the key goals of the FHLBs is tofinance economic growth, it is troubling to me that, based uponyour representations, Sallie Mae's use of the credit line does notappear to lead to the origination of any new loans or assisttroubled student borrowers,” Warren said. “If that is thecase, then I am having difficulty understanding how the line ofcredit to Sallie Mae meets the FHLB's stated goals.”