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Amazon teams with Wells Fargo to offer student loan discounts

Wells Fargo will offer discounts on private student loans to subscribers of Amazon "Student Prime," in a marketing campaign designed to win over younger people.

Wells Fargo is offering discounts on private student loans to Amazon "Student Prime" subscribers.
Wells Fargo

Amazon is offering a new perk for its Prime customers: A discount on student loans.

On Thursday, Wells Fargo unveiled a partnership with the Seattle-based online retailer to offer cheaper rates on student loans to customers who also pay for an Amazon "Prime Student" subscription.

Wells Fargo, which is the lender for the loan, will shave off a half a percentage point from interest rates for Amazon "Prime Student" customers. The "Prime Student" membership offers traditional Prime membership benefits such as free two-day shipping and access to movies, television shows, photo storage and Kindle books. Amazon is offering a free six-month trial for students after which the yearly cost increases to $49.50, which is 50 percent off Amazon's $99 yearly Prime membership fee.

"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 statement.

While the deal sounds enticing, there are a few things student borrowers should know. For one, the discount is only available on Wells Fargo loans. Secondly, these discounts are only available for private loans and do not include loans made through the government's federal student loan program. Lastly, the fine print on the website describing the program states "Wells Fargo reserves the right to modify or discontinue interest rate discount program(s) for future loans or to discontinue loan programs at any time without notice."

Amazon did not immediately respond for comment.