Amazon offers discounted student loans to Prime members. Is that fair?

In a partnership between the self-proclaimed “everything store” and Wells Fargo, members of Amazon Prime Student will receive a 0.5 percent interest rate discount on student loans taken out through Wells Fargo’s Education Financial Services.

The collaboration will increase discounts offered to Amazon Prime Student members and will allow each company to take advantage of the other’s resources. John Rasmussen, Wells Fargo’s head of education financial services, has stated that it is a “tremendous opportunity to bring together two great brands,” but financial advisers are wary.

In addition to the 0.5 percent discount Amazon is subsidizing, Wells, whose loan rates range from 5.94 to 11 percent of fixed rate loans and 3.39 percent to 9.03 on variable loan rates, will discount an additional 0.25 percent for students who enroll in the automatic monthly loan repayment plan. READ MORE.

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