Lots of college students belong to Amazon Prime Student. It’s not only a way to get significant savings on Amazon Prime, and all the many benefits that Amazon Prime confers upon its subscribers. A number of students even use Amazon to obtain their textbooks for the school year, often at a significant savings over the campus bookstore. However, Prime Student has been making news for their partnership with Wells Fargo to give Amazon Prime Student members a discount on their student loans.
Is this a deal? The answer is, “It depends.”
One of the great benefits of Amazon Prime Student is the ability to get 80 percent back when you trade in your very expensive college textbooks in the form of an Amazon gift card. You also get free two-day shipping, and access to student only deals not available to regular Amazon customers. Students can also rent textbooks, get discounts on academic courseware, software, and other necessities. The ability to stream music and movies is also not something to sneeze at when you are on a budget. For 49 bucks a year it can be a great deal, especially for busy students juggling a heavy course load and possibly a job. The offer remains valid as long as you are in school, and there is a free six month trial period.
As for Wells Fargo and their student loans?
Again, it depends.
Should you take out a Wells Fargo student loan just because of their alliance with Amazon Prime Student? I am going to say, “Not if you don’t have to.” While saving 0.5 percent on your loan can add up over the long term, it is not a reason to generate a new loan when you don’t need one. If you are already a Wells Fargo borrower I have to say, “Go for it!” It’s a little-known perk that many banks offer, but with direct debit, you can shave off 0.25 percent if you enroll in direct debit. So between joining Amazon Prime Student and having an existing Wells Fargo student loan, take every percentage point you can get.
Don’t forget, this is a ploy to get you to buy more stuff. It comes with perks, but it is still a sales tool. I don’t need to tell you that buying something you don’t need simply because it’s on sale, is not a way to save money. One of the first things that every incoming freshman should learn to do is to create and stick to a realistic budget. While there is a huge temptation to take advantage of discounts available solely because of your student status, that money is better spent elsewhere and on your education. By all means take advantage of every offer you can in order to reduce your expenditures and your debt. Don’t take on new debt just because you will get a deal, because it is still going to cost you in the long run.