There is no truth to that.
The closest thing is that there is no penalty for withdrawing 529 plan money, if the student has scholarships. But even then, the tax is due. It's only the early/unqualified 10% penalty that is waived.
Savings bonds cashed and the money placed in a 529 plan qualifies as education spending (for avoiding tax on the interest). One gimmick is to set up a 529 plan for your daughter, with the savings bond money. If she doesn't use it for grad school, you can later change the beneficiary to a grandchild*.
But, you say the bonds have matured. That means tax, on the deferred interest, was due the year the bonds matured. I'm not sure the 529 plan gimmick is still available to you, after maturity. I wouldn't try that without consulting a professional tax accountant.
*Reference: https://www.usnews.com/education/best-colleges/paying-for-college/articles/avoid-529-plan-withdrawal...
Savings bonds can only be used for tuition and fees (or contribute to a 529 plan). But once in a 529 plan, the money can also be used for room & board, books and computers.
