State Street Global Advisors of Boston has formed a new, wholly-owned subsidiary, Schoolhouse Capital LLC, to focus on the education savings market, according to State Street Global.

The first of Schoolhouse's products will be The Education Plan, a section 529 college savings program. The plan will use multi-managers and will allow investors to choose between funds and customize their allocations, depending on their children's ages and proximity to college. It will also allow online enrollment and money transfers from individuals' bank accounts.

Schoolhouse Capital will distribute its education products through financial intermediaries, employers and conventional direct marketing. Schoolhouse has also signed an agreement with E*Trade to market and sell The Education Plan over the Internet. Schoolhouse plans eventually to provide products and services to academic institutions and related government agencies as well as individuals, according to the company.

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