Global e-tailer Amazon.com is entering the student loan business. It is partnering with Wells Fargo, to offer 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. Wells Fargo charges between 3.39% and 9.03% for a variable-rate student loan, and from 5.94% to 10.93% for a fixed-rate loan. A borrower who would ordinarily qualify for a 3.39% rate would be able to get a 2.89% rate by paying for a Prime Student subscription, a bank spokesman confirmed. Wells Fargo does not compensate Amazon as part of the deal, nor does Amazon receive any compensation from Wells Fargo. Wells Fargo, one of the largest private student lenders, had $12.2 billion in student loans outstanding at the end of 2015.
