Wells Fargo is sweetening the deal on its private student loans for members of Amazon Prime Student, both companies announced Wednesday.
Amazon Prime Student members who apply for any of Wells Fargo’s private student loan products are eligible for a 0.50% interest rate discount, according to the bank’s site. Members can also get a 0.25% interest rate reduction for enrolling in the lender’s automatic monthly loan repayment plan. Co-signers who use Amazon Prime Student may also be eligible for the discount.
Keep in mind, the discount will only apply to new loan applications received on or after July 21 of this year, and as with any loan application, borrowers will be subject to a credit check, a loan/consumer credit agreement, verification of application information, and possibly school certification of loan amount and enrollment at a Wells Fargo–participating school. Though students are not required to make payments while they’re still in school, the repayment period kicks in 6 months after graduation or upon leaving.
Amazon Prime Student offers a free six-month trial, after which students are eligible to receive 50% off of Amazon Prime, which amounts to around $49 each year. Students are eligible for this discount on Prime for up to four years, or until they’re no longer a student.
According to Wells Fargo’s website, the variable interest rates on its private student loans range from 3.39% to 9.03%. Its fixed interest rates range from from 5.94% to 10.93%.
If a borrower qualifies for the lowest interest rate within those ranges, a 0.50% reduction would be applied to that rate with the Amazon Prime Student discount, a spokesman for the bank said in an email.
To take advantage of that discount, prospective borrowers need to be confirmed Amazon Prime Student members. Once the terms of the loan are agreed upon between Wells Fargo and the customer, those remain the terms throughout the life of the loan, unless the borrower moves to refinance or take other action, the spokesman said.
Private Student Loans
Remember, if you’re considering a private student loan to help you pay for college, it’s important to do your homework before you apply to make sure it’s right for you and your finances. Unlike federal student loans, which guarantee a fixed, low-interest rate, private loans are often variable-rate commercial loans, and as we mentioned above, require credit checks. If you’re not sure where your credit stands or are concerned that you have poor credit, now’s the time to find out for sure. (You can view a free summary of your credit report that is updated every 14 days by visiting Credit.com.)
During the application process, be sure to ask questions that will help you determine whether the loan will become a burden or a boon to your finances — and to your credit. You’ll want to find out whether there is an origination fee, which many lenders charge, if there are late fees and how much they cost, and whether the lender offers deferment due to economic hardship or unemployment. Also, be sure to ask if the lender offers forbearance, which acts as a pause button for your payments. To learn more about the various repayment options student loan borrowers have, you can go here.
More on Student Loans:
- How Student Loans Can Impact Your Credit
- Can You Get Your Student Loans Forgiven?
- A Credit Guide for College Graduates