Refinance bonuses: how they work

A refinance bonus is cash, or a gift card, paid after your new loan funds. It’s real money. It’s also small next to the interest on a dental-school balance, and that’s the whole point of this page.

Here’s who pays them, what the fine print usually says, how they’re taxed, and the math on bonus versus rate.

First, the rule that matters more than any bonus. Refinancing turns federal loans into private ones. For those loans you lose RAP, PSLF, federal forgiveness, and federal forbearance and deferment, permanently. A $1,000 bonus against about $294,000 of tax-free PSLF forgiveness isn’t a trade; see Refinance vs PSLF vs RAP.

Who pays the bonus

Bonuses come from three places:

• The lender itself. SoFi runs a medical and dental referral offer: when a new medical or dental refinance borrower funds a loan through a referral link, SoFi pays the referrer and the new borrower $1,000 each.
• A referral site or marketplace sharing its fee. Lenders pay these sites when a loan funds. Some pass part of it back to you. Juno says it charges lenders a set fee, and it offers members cash back on SoFi, LendKey and Brazos loans. Splash’s welcome bonus comes through its “channel partners”, and its terms say marketing partners may receive a commission from Splash.
• A gift card for a better rate. Credible offers a $200 gift card if you close with a better rate than you prequalified for on its site.

This site may earn from lenders too, when you use one of our /go/ links. That doesn’t change your rate, and it never changes what we recommend. The details are on how we make money.

What bonuses looked like on Sept. 26, 2026

These are the offers as each company’s page stated them that day. They change often, and some are open only to new customers.

Company	Bonus	Main conditions
SoFi (medical and dental referral)	$1,000 to you and $1,000 to the person who referred you	New medical or dental refinance borrowers, not Vermont residents; can’t be combined with other offers except autopay; apply through the referral link; loan must fund; you need a SoFi Checking and Savings or SoFi Money account; paid within 30 days of disbursement
SoFi, through Juno	$500; $1,000 on loans over $150,000	First-time SoFi borrowers; finish within 44 days of your first SoFi visit; loan must disburse
LendKey, through Juno	$350; $750 on loans over $100,000	First-time LendKey borrowers; loan must disburse
Brazos, through Juno	0.5% of the loan	Texas residents and Texas schools
Splash welcome bonus	Set by the partner that offers it	Refinance at least $30,000 to $200,000, depending on the partner; check mailed 90 to 120 days after disbursement
Credible	$200 gift card	Close with a better rate than your Credible prequalification

The fine print to look for

Almost every bonus has the same handful of conditions. Read for these before you apply:

1. The link. You must start from the exact referral page or link. Applying directly on the lender’s site usually voids it.
2. The loan must fund. Approval isn’t enough. The loan has to disburse and not be cancelled.
3. A minimum balance. Bigger bonuses kick in at $100,000 or $150,000, and Splash’s partner offers start at $30,000 or more.
4. A deadline. Juno’s SoFi offer gives you 44 days from your first SoFi visit.
5. A payout window. From 30 days (SoFi) to 90–120 days (Splash’s mailed check).
6. A use-it-or-lose-it rule. SoFi and Splash say bonuses not redeemed within 180 days may be forfeited; Juno says 365 days.
7. An account. SoFi pays bonuses into a SoFi Checking and Savings account.

Screenshot the offer page the day you apply. If the bonus doesn’t arrive, that’s your proof.

Are refinance bonuses taxable?

The lenders say yes. SoFi’s and Splash’s terms call bonuses miscellaneous income and say they may be reported on Form 1099-MISC. Juno says rewards may be taxable income.

The IRS’s general rule in Publication 525 is that income is taxable unless the law specifically exempts it. We didn’t find IRS guidance that addresses refinance bonuses by name.

One detail has changed. SoFi’s and Splash’s pages still say bonuses of $600 or more are reported. The IRS’s current instructions for Form 1099-MISC raise that threshold to $2,000 for tax years beginning after 2025. The reporting threshold decides whether you get a form, not whether the money is income.

What to do: keep the bonus paperwork, report it, and ask your tax preparer how to treat it. At a 32% federal bracket, a $1,000 bonus is worth about $680 after federal tax, before any state tax.

The math: bonus versus a lower rate

Take $300,000 over 10 years. Two offers, both examples, not offers; your rate depends on credit.

	Lender A	Lender B
Rate	6.00% fixed APR	5.75% fixed APR
Bonus	$1,000	None
Monthly payment	About $3,331	About $3,293
Total paid over 10 years	$399,674	$395,169

Lender B saves about $4,500 in interest. Lender A’s bonus is worth about $680 after a 32% tax. Lender B wins by roughly $3,800.

The bonus arrives now and the savings arrive over 10 years, so check it in today’s dollars too. Discounted at 3% a year, Lender B’s savings are still worth about $3,900, far more than the $680.

Put the other way: on $300,000 over 10 years, a $1,000 bonus equals about 0.06 percentage points of rate before tax. After tax it’s about 0.04 points. Almost any real rate difference beats it.

On a 5-year loan the bonus goes further, because there’s less interest to save. There, $1,000 equals about 0.12 points. It’s still less than an eighth of a point.

When a bonus should decide it

• The rates match. Same rate, same term, same fixed or variable, similar hardship options. Then take the bonus.
• The protections match too. A slightly higher rate with a death and disability discharge or a skip-a-payment option can be worth more than $1,000. Ask each lender in writing.

What to do

1. Decide you’re a refinance candidate with the refinance vs forgiveness tool.
2. Get at least three quotes for the same term and rate type. The lender comparison covers who’s who.
3. Rank the quotes by rate first. Then compare protections. Only then look at bonuses.
4. If a bonus breaks the tie, apply through its exact link, note the deadline, and screenshot the terms.
5. Report the bonus at tax time and ask your preparer how to treat it.