The bonds are not eligible for education interest exclusion for several reasons. As ThoamsM125 said you can shift the interest to her and she may be in a lower tax bracket.
After entering the 1099-INT, you will be aske if any of these exceptions (list on screen) apply. Select I received this interest as "Nominee" (or some such wording). TurboTax will show the deduction on Schedule A. (Do not use the negative adjustment described by ThomasM125).
If the bank allowed you to cash the bonds, you were most likely co-owner.
