<prompt> Human: Hi guys,Im 160,000 debt from going to medical school, with loans at 6.8. I am in residency now making 50kyear, and the good news is that long term I should be able to tackle the debt. My grandmother offered to help out with loans when she heard how how my interest rates are. Her main concern is that she nor I have to pay taxes on this scenario. I did some research and found that she could gift me up to 10k without tax, but anything above that is taxable. I also found this that explains how there are federally set minimum rates I believe it is 2.6 currently. That leads into my third part. I explained the above to her. She wants to pay the loans with money she has in EE Savings Bonds, but she doesnt know how to access them, or set this up from here. Her bank told her that they couldnt help her, and that she would have to go through the treasury website. This is the part where Im lost and am wondering if you guys have any advice on the next best step. Thanks.  <response>: I borrowed money from my parents to pay off student debt not quite as much though, so I did some research on this. You mentioned that there are federally set minimums for the interest. I was under the impression that the part of the loan that is considered a gift, if that is how you choose to go, is the interest itself and not the principal. If you set up a loan with minimum federal interest rate, she pays income tax on that interest. If she gifts you the money that you pay back, my understanding is that the interest is the gift, so if the interest is less than 14k a year, neither of you have to pay taxes because it is under the yearly exclusion. Now, please dont take my word for it Im not 100 sure this is correct, you would definitely need a contract or some documentation in case either of you are audited, and you need to researchconsult a tax professional about this. But this would be helpful for the first part of your question. I dont know anything about EE bonds. 