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Amazon, Wells Fargo End Short-Lived Partnership Offering Discount Student Loans

Amazon.com, Inc. NASDAQ:AMZN, Wells Fargo & Company NYSE:WFC - Amazon, Wells Fargo End Short-Lived Partnership Offering Discount Student Loans

Amazon.com, Inc. AMZN 0.26% and Wells Fargo & Co WFC 0.81% have ended their student loan partnership, just over a month after its announcement, according to a report on Bloomberg.

Bloomberg cited Catherine Pulley, a Wells Fargo spokeswoman, as saying Wednesday that the "promotion for Prime Student members has ended."

According to the Bloomberg article, "The companies marketed the discounted loan deal to college students who use Amazon's 'Prime Student' product, which, for about $50 a year, allows college students to enjoy free two-day shipping on select items and instant online access to some television shows and movies."

Under the partnership, which was announced July 21, Wells Fargo said the 0.50 percent interest rate discount offered to Amazon Prime Student customers can be added to the 0.25 percent interest rate reduction granted to borrowers for enrolling in the automatic monthly payment option. Furthermore, "any interest rate discount tied to a Wells Fargo global promotion" will likewise remain intact.

The Bloomberg report said the termination of the partnership is another blemish in Wells Fargo's student loan business. Last week, Wells Fargo agreed to pay $3.6 million to the federal Consumer Financial Protection Bureau in order to settle claims over allegedly misleading borrowers, illegally charging certain fees and processing payments in a way so as to explicitly maximize late fees.

At this time, Wells Fargo has neither denied nor admitted any wrongdoing.

Shares of Wells Fargo closed Wednesday's trading at $50.80, while Amazon ended at $769.16.

During early hours Thursday, Wells Fargo was down 1.16 percent at $50.21 and Amazon was essentially flat on the day at $768.80.

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