After just six weeks of their student loan program with Well Fargo, Amazon is already ending the partnership between the two companies.
Online retail giant Amazon has never been shy about trying to expand its business into other industries. However, one of the company’s more recent ventures is already coming to an end.
According to Shahien Nasiripour from Bloomberg, Amazon is ending its partnership with Wells Fargo to offer student loans to college students. The venture lasted just six weeks after Wells Fargo had called the partnership a “tremendous opportunity” at the time the student loan program had been announced.
At the time of the deal, the student loan program had been designed to target college students who signed up for the Amazon Prime Student membership. Those who signed up for the program would get a 0.5 percent decrease in their student loan interest rate. The deal was intended to give Wells Fargo a chance to get a leg up on other banks seeking to give out student loans.
Even though the initial partnership was expected to be a multi-year deal, the two companies have quickly ended the deal after just six weeks. It was Amazon’s first attempt to break into the student loan marketplace, but it obviously must not have been living up to expectations.
It might be an unfortunate turn of events for Amazon and Wells Fargo, but not every idea is going to be a home run. Amazon has especially been known for taking on new and innovative projects, and although some like this student loan program haven’t worked out, there have been plenty of others that have.
