Series EE & I Savings Bonds

Familiarize yourself with advantages and disadvantages of Series EE & I Savings Bonds.

Workforce is changing all the time. Salary gap between college graduates and high school graduates is increasing. More and more people are looking to further their education. Nevertheless some of them think they do not have enough money to go to college. Most are simply unaware of money for college that they could get.
Financial aid can come in many different forms, such as scholarships, savings, loans, grants. Here you can find information about the most popular ones.

Benefits
Backed by the full faith and credit of the United States government, the interest from these bonds is tax free if used for qualified higher education expenses. Usually, interest on Series EE and I savings bonds is exempt from state and local taxes.

Disadvantages
The full interest exclusion is only available for single filers with modified adjusted gross income of less than $63,100 in 2006 and to married couples filing jointly with modified adjusted gross income of less than $94,700. If your modified adjusted gross income is between $94,700 and $124,700 for joint filers, and between $63,100 and $78,100 for single taxpayers the interest exclusion is phased out. Married couples filing separately cannot take advantage of this savings bond program, regardless of your income.