Yes, you read that headline right. Amazon is getting into the student loan business.
Wells Fargo announced Friday that it has partnered with Amazon to make private student loans available to Amazon's Prime Student members. Prime Students will get a 0.5 percent discount on their interest rate and qualify for a 0.25 percent rate reduction for enrolling in automatic payments.
For Amazon, this is about convincing more students to sign up for Prime, which at $49 a year is half the price of regular Prime with the same — and now expanded — perks. Amazon won't be the lender, nor will it have anything to do with the loan processing and approvals. Basically, this is just a way to get Wells Fargo's loan products in front of Amazon customers, and give those customers something Amazon thinks will build customer loyalty.
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