<p>If a student has savings bonds I assume they need to be counted as assets for the FAFSA. My question is do you use the current value (as found when looking up online) or do you use the value printed on the bond even though it's not worth that yet? </p>
<p>I have never cashed in a bond before. When that time comes in the future, is it just like cashing a regular check at the bank or do you have to do something special with them?</p>
<p>Current value</p>
<p>I haven't cashed in a savings bond since I was in college. However, all I did was take them to the bank & the teller gave me whatever they were worth. Of course, I had to claim the interest on my taxes in that year, since I hadn't claimed the interest as it accumulated.</p>
<p>Calculate</a> the Value of Your Paper Savings Bond(s)</p>
<p>will give you the current value of your bonds</p>
<p>I also haven't cashed a savings bond before. When you take the bond to the bank, does the bank tell you right away how much interest you have received from the bond? Or does the bank send you some tax form at the end of the calendar year?</p>
<p>I don't know^^. But interest on some savings bonds may be tax free if used for qualified education expenses (tuition and fees). Ironically that does not include ones in the students name if they were purchased before the student turned 24.</p>
<p>When you redeem the bond at the bank, the bank will calculate the interest earned. At some banks the form you need for tax time will be given to you then and other banks will mail it at the end of the year.</p>
<p>What if you don't want to redeem the bond? Do you list them as assets?</p>
<p>Also, what's the difference if they're in your name, your spouse's name, or your child's name?</p>
<p>Yes it is an asset whether you want to redeem it or not.</p>
<p>In a parent's name it must be reported as a parent asset (may come under protected asset allowance, if not 5.6% will go to the EFC). If it is in the students name it must be reported on FAFSA as a student asset (20% to the EFC unless you qualify for simplified needs or auto 0).</p>
<p>If the bonds are in the parent name then certain bonds may be redeemable tax free to pay for education expenses. If they are in the students name they cannot be redeemed tax free. (stupid as that may sound).</p>
<p>If other people buy the bond (their soc. sec # on it) and gift to student as joint owner (e.g. grandparent)... is the student who redeems it the one responsible for the tax on the interest? The interest could be tax-free, if the student is not required to file for the year the bond was redeemed.</p>
<p>What if grandparents bought child one, but it's sitting in a safety deposit box? Don't you have to wait until a certain number of years for them to mature?</p>
<p>If they're not at maturity yet, are they counted as assets?</p>
<p>Also, is there a limit that you report? I doubt it's more than a hundred dollars.</p>
<p>Go to the website in post #4. You can determine the present value of the bond that way. You must include the present value of all savings bonds in the student's name as his/her asset. You COULD cash it in to pay for school, even if it hasn't fully matured - that's why the value has to be included. ALL assets, big or small, must be reported.</p>