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 "I'll be honest with you, there were enough people who already
were utilizing 529s that they started feeling as if, well, you know,
if changing like this in midstream ... it wasn't worth it for us to
eliminate it," Obama said, responding to a question at Ivy Tech
Community College.
The plan to eliminate it was met with an immediate backlash from
middle-class savers, as well as Republicans and Democrats in
Congress.
Obama said he first proposed the change because most people using
the tax-free accounts are on “the high end” of earners.
But members of his administration “changed our mind,” Obama said
because of public outcry.
 Obama said a plan to pay for making the first two years of community
college free would instead depend more heavily on closing tax
loopholes.
Obama aimed to boost support for the community college plan, one of
many proposals he has laid out recently in his State of the Union
address last month and 2016 budget on Monday, which are intended to
strengthen the middle class.
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The plan and its $60 billion price tag over 10 years has faced
skepticism from Republican lawmakers.
Obama noted that he has established 529 college savings plans for
his two daughters.
(Reporting by Julia Edwards; Editing by Bernard Orr)
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