Graduates should be hit with a 2.5% real rate of interest on their student loans to pay for a national civic service scheme, a think-tank has said.
University students would also be forced to do 100 hours of community service under the recommendations in the Service Nation report by think tank Demos.
Researchers estimate an investment of £450 million to set up the national service-style scheme could yield more than £1 billion in economic and social returns.
A civic corps serving the nation would help local communities, ease the burden on public services and boost young people's employability, the report said.
Co-author Sonia Sodha said the student loan interest rise would be a "fair levy" on those benefiting from state-subsidised university education.
"Civic service needs to be for everyone, not just a route out of employment or disengagement for the explosion of Neets (young people not in employment, education or training) caused by the recession," she said.
"Those who have gained most - graduates and the employed - must also give something back."
Higher Education Minister David Lammy backed the call for a national civic service, saying he hoped it was included in the next Labour manifesto. But he said he would not support making students pay for the scheme.
Mr Lammy said: "I have long campaigned for a national civic service and I hope the recommendations from this excellent report find their way in to the next Labour manifesto.
"In a consumerist age young people need more opportunities to develop an ethic of service to others. In a multicultural Britain we must bring together young people from different backgrounds to encounter and work alongside one another."
