Republicans in the House of Representatives and President Barack Obama agree in general on what to do with student loan interest rates: Let them vary with the market.

Congress now sets the rate, but a plan from House Republicans would base it on market rates instead. If it becomes law, subsidized loans – those that don’t accumulate interest while a student is in school – would have a higher interest rate next year. Unsubsidized loan rates would be lower. In the next five years, if interest rates rise as expected, student loans would cost more.

The White House plan is similar, but would use a different formula than that set forth by House Republicans.

Under current law, the interest rate is scheduled to go up from 3.4 percent to 6.8 percent on July 1 for subsidized student loans. The law expired in 2012, but a one-year extension kept the rate low last year.

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