<p>You can gift the interest. There isn’t going to be $11K of interest each year. The loan papers are not ones that need to be bandied about anyways. THere onlyif a question arises about source of the money. Chances are small that would happen. You can also gift the loan in increments of $11K as well. </p>
<p>The fact of the matter is that monetary gifts are not generally reported anyways. Who reports the haul they get at graduation? Or birthday money? It isn’t difficult to structure this in a way that isn’t a problem.</p>