On July 21, Amazon and Wells Fargo announced that they were forming a partnership to offer private student loans to those who qualified. They promised a "tremendous opportunity" for those trying to finance their education. However, on Wednesday, August 31, the two companies announced that the program would no longer go forward and that they had dissolved their partnership.
The partnership represented the first attempt for Amazon to enter the student loan market while giving Wells Fargo the opportunity to grow in this area of lending. The plan was to reach out on a daily basis to millions of students who use Amazon, have an Amazon Prime Student account, and would be interested in the half a percentage point discount offered by Wells on loans made through the partnership.
Following the announcement, Amazon has removed Wells Fargo from the Prime Student section of its website. Likewise, the Wells Fargo website that featured Amazon has gone and now returns its users to the bank's main student loan page.
Inquiries into why the partnership was dissolved were not answered by either Amazon or Wells Fargo. The only statement made came from a spokeswoman for Wells Fargo, Catherine B. Pulley, who simply stated that the program had ended. The partnership had been discussed for over a year before the official announcement in July.
Find out quickly
at what rate you can refinance your student loan.