I am Mike Gracz, please call me on 630-659-7644 or email me at email@example.com. I am an Expert from the Gustan Cho Associates. I love the 203K Loan for my clients. And yes there is a way around that 1% rule. You must contact your student loan provider and ask for a FULLY AMORTIZED FIXED MONTHLY PAYMENT, This is typically a 25-year payment plan. You must check with your lender to make sure they can use that payment plan. Many lenders have additional overlays when it comes to student loans. USA Mortgage does not. We would love to help you with your 203K loan, what state are you looking to buy a home?