NU Online News Service, Aug. 1, 2003, 1:55 p.m. EDT – The New York State Higher Education Services Corp. has picked a group led by Upromise Investments Inc., Needham, Mass., to replace the Teachers Insurance and Annuity Association, New York, as the manager of the state’s New York College Savings Program.
Upromise runs a system that awards parents college savings points for buying goods and services from participating companies. The Upromise team that would be running the New York savings program includes the Vanguard Group, Valley Forge, Pa., according to New York officials.
New York state awarded TIAA a five-year contract to run the college savings program, which now controls $1.8 billion in assets, in 1998. The contract expired July 30, but New York has extended the contract until Nov. 14, officials say.
TIAA will continue to provide administrative and investment management services until Upromise takes over, officials say.
The officials say the state chose Upromise to succeed TIAA through a competitive bidding process. Reviewers based their bid ratings on the projected program costs and the quality of the proposed administrative, marketing and investment management services, officials say.