<p>I recently read that although the earnings on EE Savings Bonds are tax-free if used to pay for qualified educationa expenses, they are also included as income and may, therefore, have the potential of reducing or eliminating the possibility for need-based aid. </p>
<p>I’m wondering if it would be a good strategy to save EE bonds to pay for the Senior year in college. Isn’t the last FAFSA filed in April of the Junior year, which includes the prior tax year? </p>
<p>A parents income level in the tax year of the student’s Junior year does not impact anything since it is never reported to the school – Correct?</p>