Amazon team up with Wells Fargo in student loans deal
Online retailer will offer lower interest rates and discounts on Prime Student packages
Updated : 09:39
E-commerce company Amazon has teamed up with United States bank Wells Fargo, with the bank offering discounts and lower interest rates on student loans for those who use the company's Prime Student services.
Students pay an annual fee to register for the service, in which they receive free delivery, discounts and access to Amazon's streaming service, among other perks.
The deal should help the bank promote products and Amazon attract students, as Prime Student subscribers will be eligible for a 0.5% discount on student loans.
John Rasmussen, Wells Fargo’s head of personal banking said that it would be a highly beneficial mutual agreement.
“We are focused on innovation and meeting our customers where they are – and increasingly that is in the digital space,” Rasmussen said.
“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.”
In an email, Amazon said it has "a track record of investing in great offerings for students" and that it was "excited" about the new partnership.
Student loans in the US is a huge business, with Americans thought to hold over $1 trillion in student debt, and it is an issue that has been discussed by presidential candidate Hillary Clinton, as she hopes to lower the cost of student finance.