We actually had that through the VISTA and Americorps programs in the 90s and early 2000s (I believe Americorps is still around). I was a volunteer for VISTA in 2003, just as the Bush Administration shredded the program. They signed us up on the promise that our student loans would have their payments covered while we volunteered, then refused to deliver for six months. It wasn't until then Senator Hillary Clinton got involved that they reversed their decision, and by that time I and half the class were forced by financial reasons to drop out of the program. The living stipend they gave us was only $740 a month, and we were forbidden to take outside jobs. Throw student loan payments on top of that and there was no way to survive.

The Bush admin knew this, and they continued to dismantle the program, using the disastrous drop-out rates of the class of 2003 as an excuse for further cuts. VISTA is now gone, and with it the specific part of Americorps that was focused on poverty relief.

The reason we don't have these programs anymore is because the conservatives have deliberately dismantled them, not because the left hasn't tried again and again to use government towards building real value in our society.