I heard there is some advantage to owning EE or I bonds?

Both EE and I US government bonds are eligible for an education tax break. However certain restrictions limit their applicability. Interest on all I or EE bonds are free from income tax if you use it to pay for college expenses and your income in the year you cash in the bonds falls within certain limits. As of January 1, 2012, paper savings bonds will no longer be sold at financial institutions. This action supports Treasury’s goal to increase the number of electronic transactions with citizens and businesses.