"When we go into schools, even some of the first-graders know who we are," said Morris, who is also chair of the College Savings Foundation, which hosted an industry conference in Austin, Texas last week.
For many other plans, though, increasing awareness and participation is a challenge. Even offering free money may not be enough.
Maine, for example, offers a $200 bonus for opening an account, $100 for signing up for automatic deposits and a 50 percent annual match for the first $600 in 529 contributions.
Still, although the state used to offer parents of every newborn child $500 from a private scholarship fund if they opened a 529 account, only 40 percent of eligible families did, said Bruce Wagner, chief executive of Finance Authority of Maine, which oversees the plan.
So many parents "left that money on the table" that the 529 requirement was dropped last year. Now, only 12 percent to 14 percent of newborns' parents are expected to open an account, "and that's way too low," Wagner said.
Procrastination
At least 11 other states offer matching grants and most states offer tax deductions, as well.
While matching grants are sometimes limited to lower- and middle-income families, the state and federal tax breaks are more valuable the higher a family's tax bracket is.
That, plus certain gifting and estate-planning advantages is what led the White House to target 529s as a tax break for the rich and to try to do away with the tax-free advantages.
In the backlash, 529 advocates said that most accounts are held by those with annual incomes that are below $150,000. While they may be wealthier than families who don't have 529s, they're also less likely to get financial aid, and thus more likely to need their savings to pay for college, Morris said.