Congressional bargainers appeared to be closing in on a compromise that would head off a July 1 doubling of interest rates on federal loans to 7.4 million college students and end an election-year battle between President Obama and Congress. 

Senate aides from both parties said Friday the two sides were moving toward a deal on how to pay the measure's $6 billion price tag, the chief source of partisan conflict. 

The goal is to push legislation through Congress next week so the current 3.4 percent interest rate on subsidized Stafford loans can be preserved for another year. A 2007 law gradually reduced interest rates on the loans but required them to balloon back to 6.8 percent this July 1 in a cost-saving maneuver. 

On another front, the two sides were also close to an agreement to overhaul federal transportation programs, according to House and Senate aides from both parties.