Amazon quietly ends its student loan discount program

Just a few weeks ago, Amazon and Wells Fargo announced a program that would give Prime Student customers a modest 0.5-percent interest rate discount on new student loans. It appears that partnership is already over -- the promotion's original landing page now simply redirects to Amazon's top "college deals," with no mention of the discount on Wells Fargo's loan page or on Amazon Prime. Neither company gave a reason for why the promotion ended so soon, but Wells Fargo flatly told Bloomberg that the "promotion for Prime Student members has ended."

The original deal could be stacked with a automatic payment plan for a total interest rate reduction of 0.75-percent -- available only to Amazon Prime Student subscribers who paid a $49 annual fee. On the surface, it seemed like a good discount, but consumer advocate warned that the Amazon advertising helped to bury the notoriously high interest rates associated with most private educational loans. In any case, the Amazon partnership is no more. Still looking for a loan? Then the old advice is still the best advice: look at federal loans. Their interest rates are always better.