The Education Savings Bond Program allows individuals to exclude interest income from certain U.S. government bonds, issued after 1989, from their taxable income when using the funds to pay for qualified higher education expenses. These bonds include Series EE and Series I Bonds.
Series E Bonds were savings bonds issued by the U.S. government from 1941 to 1979. They were generally issued at 75% of their face value and matured at par based on interest rates, ceasing to accrue interest after 40 years.
A Series EE Bond is a type of U.S. government savings bond that earns a fixed interest rate for up to 30 years and is guaranteed to double in value if held for 20 years.
A Treasury Bond (T-Bond) is a long-term debt instrument issued by the U.S. government, as well as a term for bonds bought back by corporations.
