Each year, the Commissioner of Education must set and publish deterrence-level interest rates on refunds for cosmetology and barber schools in accordance with Texas Occupations Code, §1603.3602 and §1603.3604. The 2025 interest rate for refunds under both statutory provisions is 9 percent.
This interest rate is calculated in January each year by adding 5 percent to the federal short-term borrowing rate and rounding to the nearest whole number.
