A taxpayer cashed in on some Series E and EE bonds during the year. At the same time, they also paid for higher education costs as a college student during the year. Which of the following is true?

Select one:

a$.$ The Series E and EE bond income is considered fully taxable as interest income in all cases, with no exception.

b$.$ All of the Series E and EE bond income is considered tax$-$free since the taxpayer is a student.

c$.$ The Series E and EE bond income could be considered tax$-$free to some extent if it was used to pay or could be considered as having been used to pay higher education expenses.

d$.$ The Series E and EE bond income is considered capital gains income, and is therefore subject to a preferential long$-$term capital gain rate on taxation.