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Bill Would Give Students Some Relief From College Debt

CHICAGO (CBS) -- Coming out of college with thousands of dollars in debt is becoming the norm for students.

But there may be hope in sight. A bill that would bring relief to many families has made its way to Congress, CBS 2's Marissa Bailey reports.

It's nearly three years down and one to go for University of Illinois junior Rachael LaManna. She says the closer she gets to graduation, the closer the reality of the $25,000 she owes in student loans.

"It's almost like an amount that I'm not even really, like, understanding right now," she says.

U.S. Rep. Hansen Clarke (D-Mich.) has proposed a bill called the "Student Loan Forgiveness Act of 2012."

His "10-10" plan calls for borrowers to pay 10 percent of their income for 10 years after graduation. Whatever debt is left over would be wiped away -- no questions asked.

"Student loans have really changed public education, and higher education, from a way to pursue the American dream now to a national nightmare," Clarke says. "Once you get out, you see that those loans are really high, and that it's a burden for you to pay them off. Then, unfortunately, you realize what you've gotten yourself into. Many times, it's too late."

Federal and some private loans would be eligible under the "10-10" plan.

"I want student loan payments to be manageable and affordable for everyone," he adds.

Back on campus, LaManna says it sounds like a good idea. For now, that looming $25,000 is all she can think about.

"I'm going to have to be supporting myself through a job, and it makes me nervous just knowing that I'm going to have to pay off these loans, and finding a secure job to do that," she says.

Congressman Hansen says he has gotten support from colleagues for the bill, but he is encouraging people to contact their local representatives.

U.S. Sen. Dick Durbin (D-Ill.) is currently pushing for private student loan reform.

To learn more about Rep. Clarke's legislation, click here.

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