So what do advisers really think about 529 plans?

Asked how the market downturn affected clients with 529 plans, almost 59% out of 216 respondents — mostly registered investment advisers and broker-dealer representatives — said “clients stayed in and now accept market volatility.”

An additional 30% of respondents said that clients with 529 plans stayed in “but are very dissatisfied.” Only 2% of respondents said that clients cashed out of the plans.

When it comes to how advisers view 529 plans themselves, the vast majority (88%) of those surveyed said that they recommend the plans to clients. But some also said they believe that the industry could do a better job of educating and communicating to advisers, so advisers in turn can do a better job educating and communicating to clients.

The lion's share of those who recommend 529 plans advise clients to look at both in-state plans and out-of-state plans. Most of those who do not recommend the plans said they prefer other investment options, the survey found. A smaller percentage of respondents said they don't like the available investment options.

Most advisers surveyed (79%) said they are well-informed about 529 plans. But those who said they are not indicated a desire for more information about the differences among the state plans, as well as where 529 plans fit in an overall financial plan. They would also appreciate knowing more about using 529s as an estate planning tool, how 529s affect financial aid, and the relationship of 529 plans to HOPE Scholarships and lifetime learning credits.

The 529 college savings industry is beefing up its marketing to advisers, with industry leaders saying that working with advisers is the best way to sell the plans.

Although it takes work to understand 529 plans, one conference attendee said today that the burden is on advisers to figure out the pros and cons.

Antoinette Chandler, a senior vice president at Morgan Stanley Smith Barney and a member of the ScholarShare Investment Board, recommended that advisers research available 529 plans, come up with a list of favorites, and provide clients with a short list of three possibilities.

“Financial advisers have a lot of power,” Ms. Chandler said during the conference. “It is absolutely our job to educate and deliver a very clear and concise message to clients. Clients don't want to do the work. That's why they're coming to you.”