Ask Terry Questions Series EE savings bond for student loans

Series EE savings bond for student loans

By Terry Savage on August 05, 2023 | Credit/Debt

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!

money

ASK TERRY

a personal
finance question