Amazon.com Inc is entering the student loan business in a partnership with Wells Fargo & Co, offering cheaper rates for loans to Amazon customers who pay for a “Prime Student” subscription.
The deal calls for Wells Fargo to shave half a percentage point from its interest rate on student loans to Amazon “Prime Student” customers, who also get benefits such as free two-day shipping and access to movies, television shows and photo storage.
“Amazon’s looking for increased membership in Student Prime. That’s what they want out of this deal,” John Rasmussen, head of Wells Fargo’s Personal Lending Group, said in an interview. “What we’re looking for is exposure to our products and services and awareness. That’s the extent of the relationship.”