With Obama's proposal meeting such a fast end, "politicians are going to think twice about going after 529 plans ... at least in the short run," McGee said.

That still leaves plans facing what may be the biggest obstacle: Parental procrastination.

Families often focus too late on how much college will cost and how they will pay for it, said Martha Savery, spokeswoman for the Massachusetts Education Financing Authority.

"We say, 'No one can save it all, and no one should borrow it all,'" Savery told the conference in Austin. "If you don't save, the reality for you is that there'll be extensive borrowing."

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