<p>We have several EE Savings Bonds - some in the kid's names, some in ours or both. Thing is, most of these bonds won't be at full maturity when the kids are ready to go to college. If we do not cash the bonds, are they not reported on any financial aid forms ? Or are they? How does this work?</p>
<p>You report them as assets in the names of whoever owns them. There is an online calculater at the government bonds website - if you punch in your bond info it will calculate the value of them. My DS has some EE bonds bought for him by his grandmother. They are NOT taxfree if used for educational purposes, because they have to have been bought by us for DS to meet that criteria. He reported them as assets on his FAFSA and Profile. They do not have to be reported on income tax forms until they are cashed. Taxes are due on them when they are cashed. Hope this helps. :)</p>
<p>So did they count against your EFC? If they are not mature, you're not expected to use them are you? Doesn't seem like they could make you use bonds that aren't mature...</p>
<p>They do count against your EFC coz in theory you could cash them if you want - that's why you only report the CURRENT value according the calculator - which will be less than face value if not mature.</p>
<p>also when cashing think of tax implications. In general if the bonds are in kids name, cash and eposit the proceeds in their account. Interest income will be reported on their 1099. They are generally in lower tax bracket.</p>
<p>Would there be a benefit of cashing these in early (prior to maturity and prior to the year before the FAFSA has to be completed to avoid income for that tax year?)</p>
<p>Pearl</p>
<p>That is exactly what we did.... cash in all of our EE bonds before my oldest son's "base" year (Jan of junior year - Dec of senior year).</p>
<p>Consider cashing and converting to a 529 college savings account, which currently would be reported on FAFSA as a parental asset and receive a much more favorable treatment in the FAFSA formula. For many, it would be below their asset protection allotment, and not count against them at all.</p>
<p>You have to report them. Unless you put them in a grandmother's name.</p>