Series EE savings bond for student loans
My son graduated in May but still has some Series EE savings bonds. If he used these to pay down some of his college loans coming due would he still have to pay interest on earnings?
Terry Says
When you cash the bonds in, the owner must pay taxes on all the accrued interest. But that’s probably a better idea than paying the likely higher interest rate on his loans! And even if the rates are about the same, it feels better to pay down the debt!