There's another option at 29 plans (in 16 states) administered by Upromise Investments Inc.

WSJ: For Graduation, a Gift of a 529

That "is a regulatory, compliance and anti-money-laundering challenge, " says Jeff Howkins, chief executive of Upromise Investments, a unit of Sallie Mae.

WSJ: For Graduation, a Gift of a 529

Upromise is a service that helps people save for college that was bought in 2006 by student loan packager, Sallie Mae.

FORBES: SavingStar Makes Paperless Coupons National

In a November 2 interview with CEO David Rochon, I learned that his previous job as President of Upromise.com helped lay the groundwork for SavingStar.

FORBES: SavingStar Makes Paperless Coupons National

He struck deals with companies like Bristol-Myers Squibb and Novartis, offering 20% discounts on meals for traveling employees, and with Upromise, allowing members of the college-savings program to earn tuition money by dining at Idine-affiliated restaurants.

FORBES: No Free Lunch