Previously, we talked about how America’s middle-class is becoming “extinct” due to debt, unemployment, and the financial crisis. Well, the Obama administration doesn’t want to go down without fighting. Several initiatives have been launched to bring peace of mind back to the middle and even lower-income segment.

These programs won’t actually do much for the unemployed and its contribution to the economy may be negligible. Whatever the case, it may be a beacon of hope for struggling American families who just about had it. Among the programs introduced during the State of the Union address include:

Cap on Student Debt

It is no secret that even professionals in a cushy job are struggling with student loan repayments. Student debt is a big problem because college graduates are burdened with thousands of dollars to be repaid as soon as they step out from school. Statistics suggest that two-thirds of American graduates carry an average student debt of $23,000. Obama’s plan seeks Congress’s approval to limit their monthly payment to 10% of their discretionary income.

Child Care Tax Credit

This type of tax credit is nothing new to the American public. But President Obama is encouraging Congress not only to expand the number of households covered but also to almost double the tax credit of individuals eligible for it. Under the proposal, households with an income of $85,000 or less annually can get 35% credit for their expenses (up from the current 20%). It may be the push that stay-at-home parents have been hoping for. The child care tax credit will encourage them to join the labor market again.

Automatic IRA Deposit

Employers who don’t have a retirement program in place can start individual retirement account for each of their workers. Small businesses and their employees will be the main beneficiary of this initiative. Making it easier to contribute will be a bonus for people who currently don’t have money for retirement.

• Assessing the Middle Class
• U.S. Unemployment – Stemming Job Losses without Second Stimulus
• When To Quit Your Job – How Much Money Do You Need?
• Graduates Struggling to Repay College Debt Burden
• $1 Million No Longer Enough for Retirement
• Savings Mistakes You Can Learn From
• Helpful List about Retirement Planning
• Why Job Hopping is a Bad Idea in America
• More Taxes in the Pipeline
• Credit Card Legislation – Companies No Longer Allowed to Offer Perks