Colleges don’t take your money upfront so the idea that they are going to suck 160K out of you all at once is a misperception of how it works.
You need to run the financial aid calculators. You will have the option of deciding HOW to fund your share of college costs, i.e. borrow, pay out of current income, or cash in a portion of your equity (bonds, savings, etc) to pay for it. Colleges aren’t going to say, “oh you have bonds, give them to us”. These assets are like any other- keep them, liquidate them, do whatever you want, but the fair market value becomes part of your calculation of what you own and therefore, how much you can afford to pay for college.
Grandparents assets are not part of the calculation. So I guess part of your question is that if the bonds are in your mom’s name, do they get counted- and the answer is no. Assets in your child’s name get assessed at a higher rate (which is fair- if a kid has money, presumably it’s to pay for college) than yours does (since you have other needs- retirement, for example).
Does this help???