There are quite a few good reasons why customers should sign up for Amazon Prime. If free two-day shipping, access to Prime Video and its biggest deals on Prime Day don't sell you, then how about also getting a discount on your student loan?
Amazon has teamed up with the bank Wells Fargo to provide some students with interest rate discounts on student loans as just another perk of being a Prime customer.
Those who belong to Amazon Prime Student, the version of Prime for college students that costs half of the $99 annual fee at $49 year, will be eligible for a 0.05 percent discount on private student loans issued through Wells Fargo Education Financial Services. Members can also get an additional 0.25 percent discount if they enroll in automatic monthly loan repayments.
"We are focused on innovation and meeting our customers where they are — and increasingly that is in the digital space," John Rasmussen, Wells Fargo's head of Personal Lending Group said in a press release. "This is a tremendous opportunity to bring together two great brands. At Amazon and Wells Fargo, delivering exceptional customer service and helping customers are at the center of everything we do."
The Amazon and Wells Fargo partnership is beneficial for those both parties.
The online retailer can further target millennials who may sign up for a Prime account for college (perfect for when buying used textbooks or dorm room essentials) and keep them as members even after they graduate.
Along with being cheaper than the standard Prime membership, college students can sign up for a six-month trial to access all its benefits like special deals and promotions aimed toward them. Plus, getting a low-interest loan to pay for their education is just smart.
Wells Fargo, on the other hand, which is the second-largest private student lender behind Sallie Mae, will get more people borrowing from them and be more competitive against other lenders.
The companies are not making money off of each other as part of the deal, but rather just working together for their own agendas. Amazon is looking at the partnership as yet another program added to its perks, but will keep its distance from the money lending.
"Amazon is not a lender and is not affiliated with Wells Fargo. Amazon is in no way involved in the underwriting or origination of loans from Wells Fargo," Amazon's fine print reads.
Even so, this allows students to save a bit on their student loans while also saving some money when shopping online.
Source: Wells Fargo
Photo: Paul Fisher | Flickr