New Mexico is not the only state forced to pare back 529 providers, due to Schoolhouse Capital's recent exit from the college savings market. In fact, Oregon has had to twice revamp its 529 plan within the past two years due to unusual circumstances.

In May 2003, the State of New Mexico hired Schoolhouse Capital to manage several 529 college savings products, including a new adviser-sold 529 plan, dubbed USACollege Connect, that utilized mutual funds managed by Federated Investors of Pittsburgh.

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