Q. When I cash in savings bond, can I use the money to pay tuition/books and housing?
A. Yes and no. You may use cashed savings bonds to pay for QHEE (Qualified higher educational expenses). For cashed savings bonds, "Funds can only be used towards tuition-related expenses, including lab fees and degree-required courses. The funds may not be used to cover the costs of board, books, or recreational activities"* You may not use cashed saving bonds for room (housing) and board.
However, there is a loop hole available. Putting cashed savings bond money into a 529 plan is a QHEE, for savings bonds. Room and board are qualified expenses for a 529 plan distribution. So, cash the bonds and put the money into a 529 plan (must be done in the same calendar year). Then you can withdraw the money to pay college expenses, including room & board, books and computers, as well as tuition and fees (the withdrawal must be in the same calendar year as the expenses).
*Reference: https://www.investopedia.com/ask/answers/111414/what-education-savings-bond-program.asp
