How old was you daughter when the bonds that she owns were issued?
From IRS Pub 970:
You may be able to cash in qualified U.S. savings bonds without having to include in your income some or all of the interest earned on the bonds if you meet the following conditions.
-You pay qualified education expenses for yourself, your spouse, or a dependent for whom you claim an exemption on your return.
-Your modified adjusted gross income (MAGI) is less than $92,550 ($146,300 if married filing jointly).
-Your filing status isn't married filing separately.
Qualified U.S. savings bonds.
A qualified U.S. savings bond is a series EE bond issued after 1989 or a series I bond. The bond must be issued either in your name (as the sole owner) or in the name of both you and your spouse (as co-owners).
The owner must be at least 24 years old before the bond's issue date. The issue date is printed on the front of the savings bond.
https://www.irs.gov/pub/irs-pdf/p970.pdf (see pg. 63)