It’s definitely possible to exclude the income from Series I bonds when you redeem them (if that’s what you mean), as long as they were used for “Qualified Education Expenses.” Here’s the IRS talking about that, as well as a TurboTax discussion with the logistics.
When you’re doing this in TurboTax, the program will help you sort out whether they’re taxable or not (in the 1099-INT section, after you check “My form has info in more than just box 1” and indicate the interest is from I Bonds). But keep in mind that any amounts you enter here (to exclude the bonds from taxation) can’t be used for an “American Opportunity Credit” (which is generally much larger than the tax on those bonds).
So it’s normally advisable only to enter amounts that are left over after you’ve maximized that credit, if you’re eligible for it. (Here’s the IRS rules related to this.) If this is relevant to your situation and you’re not clear on it (or if you’re not eligible for the AOC, but possibly a different education credit), be sure to post here again. It’s a tricky area of the tax code, and one where people leave a lot of money on the table. Thanks avineet7!
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