Total IRA Distribution & Student Loans

Hello there,
Suppose the following: total rollout of an IRA in the year 2000 for the sole purpose of paying off a Student Loan. Is there any way to LEGALLY avoid the 10% penalty? If so, what is the best way to prove that the money was used for the Student Loan payoff?

Thanks!

IRA distribution for student loan

Sorry, the only exception to the 10% penalty rule that comes close to your facts is that they allow distributions to pay higher education expenses FOR THE YEAR for education furnished at an eligible educational institution. The education must be for you, your spouse, or the children or grandchildren of you or your spouse. Qualified higher education expenses are tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a student at an eligible educational institution. In addition, if the individual is at least a half-time student, room and board are qualified higher education expenses.

So you can avoid the penalty only if the expenses were incurred in the year of the distribution. Presumably that is not the case.