Schoolhouse Capital, a division of State Street Corp., is teaming up with asset management giant Federated Investors and the state of Oregon to launch a state-sponsored 529-college savings program.

The new 529 plan, USA CollegeConnect, enables anyone, regardless of age or residency, to save by investing through Federated’s family of funds, either in a fund based on the child’s age, or in any combination of 11 mutual fund portfolios. Under the terms of the deal, Schoolhouse Capital will provide program management, investment management oversight and program administration for the plan.

"Assets in 529 plans have more than quadrupled in recent years to over $15 billion, as parents and other family members begin to recognize the plans’ college planning potential," said James F. Getz, president of Federated’s retail sales division, in a release. "Together with Schoolhouse Capital, we have developed a product that offers competitive benefits to investors."

USA CollegeConnect is sponsored by the state of Oregon and will be sold nationwide through a network of broker/dealers, the companies said. Investors can open an account with a minimum balance of $500 and make contributions in increments as little as $100.

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