Under the project, $1,000 is being placed into savings accounts for each of the newborns for future college expenses.

The seven-year study is a collaboration between the state Treasurer's Office and the Center for Social Development at the George Warren Brown School of Social Work at Washington University in St. Louis.

Officials say the study could lead to national policy changes on increasing the number of college graduates.

As part of the SEED for Oklahoma Kids project, more than 1,300 newborns were randomly selected to get the $1,000. They represent half of families agreeing to take part in the study.

State Treasurer Scott Meacham said the study puts Oklahoma in the forefront of influencing national policy on increasing the number of Americans who attend college.

"We believe it has the potential of breaking the cycle of poverty and dramatically increasing the number of college graduates" in Oklahoma, said Gov. Brad Henry.

Families, who are encouraged to make additional deposits into the accounts, also praised the program.

"Being chosen to receive this SEED money made us take the time to fill out the paperwork and even put some additional money in an account for our son Samuel," said Lisa Creed of Edmond.

"When you're busy as parents you say, 'Yeah we need to set up something,' but your life is hectic and you just don't get around to it," she said.

Oklahoma was selected for the study in a competitive bid process. Funding is coming from private resources and could total $2.3 million for Oklahoma families. Private sponsors are the Ford Foundation, the Lumina Foundation for Education and the M. Charles Steward Mott Foundation.

As part of the study, the $1,000 deposits may be matched with up to $250 per year for four years, depending on income eligibility.

Parents of children not picked to get the $1,000 have agreed to periodic interviews of their saving behaviors so a comparison can be made with the winning families.

Raising the number of college graduates has been identified by state policy makers as one of the keys to the state prospering in the future. The number of Oklahomans with bachelor's degrees runs 20 percent below the national average.

Michael Sherraden, director of center at the St. Louis college, said SEED OK accounts are similar to accounts being set up in the United Kingdom for newborns.

"The theory behind SEED OK is to determine how saving and accumulating assets within a household affects the family and educational achievement of children," Sherraden said.

"For instance, we anticipate that having an account for college education will lead parents to think positively about college opportunities for their children. Maybe they will be more likely to turn off the TV and read to their young children. We will be asking these questions."

If the results of the project are positive, "the policy goal will be to have an account for every newborn in the nation," Sherraden said.

Among the reasons Oklahoma was chosen for the project was the diversity of its population, the working relationships between Meacham and other state agencies, and the features of the state's college savings plan.

"Seeding of college savings accounts has the potential to go a long way toward ensuring that children become true stakeholders in America's economic future," Henry said.