WASHINGTON (AP) — Senate Majority Leader Harry Reid on Thursday sought to defuse a partisan standoff over how to prevent student loan interest rates from doubling next month for 7.4 million students.

In a letter to Republican leaders, Reid, D-Nev., proposed extending current interest rates for the next year and paying the effort’s $6 billion cost with a combination of savings. His offer, coupled with a recalibrated recent offer from Senate Republicans, raised hopes of a deal that could hold off rising loan rates.