School A: (Let's analyze the original)

Loan Term = 200K @ 7.9% for 20 years <----- 20 years? Why would you pay it in 20 years, especially as a dentist?

Monthly Payment = $1660

Total Interest Paid = $198,500

Total Paid = $398,500

Here's a more realistic repayment:

Loan Term = 200K @ 7.9% (you can find better btw) for 10 years

Monthly Payment = $2390

Total Interest Paid = $86,485

Total Paid = $286,485

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There's no need to analyze the other scenarios, but as you can see. By paying ~$800/mo more, you save over $100k in interest. 10 years (imo) is still a long repayment, 7-8 is more ideal. Of course, situations vary.

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Second, he mentions salary + taxes:

Starting salary of new grad = $120,000

Taxes at 28% = $33,000

$120k is on the low side, usually it's somewhere between $140-150k in 2016 (again depending where you live/work). Many people I know (recent grads) started with $700/day.

Now, taxes. 28% is correct, however, you shouldn't be paying your "full" tax rate. There are deductions (e.g 401K or RRSP for Canadians), if you're contracted you can claim many expenses, and so on.

So again, a bit old and oversimplified.

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Everything else such as mortgage, car, etc, etc depends on where you live, what you use, and how much you use.

Lets assume your debt is $300K, and you want to repay it in 8 years.

Initial Debt: $300K @7.9%

Repayment Time: 8 years

**Total Payments: $402K**

Interest: $102K

**Monthly Payments: $4,185**

Assuming a wage of $140k, you take home $11,667 pre tax. After taxes (lets say 28% for argument sake), $8400/mo take home. Again, there are many ways to lower your tax %.

$8400 - $4185 =

**$4215**left over which is ~$51k/year. Higher than the median income of U.S. households.

If you're smart for 8 - 10 years while aggressively tackling your loan, you'd save more in interest than you would going to a school that would cost $100k more.

And even this is oversimplified.