The two are linked together. Low starting salaries mean there is less money to live on after loan repayment. If you don't have interest accruing on the loans, there is less to pay back; you either pay a higher amount over a shorter period of time, or you pay a lower amount over the same period of time. Either way, you end up ahead in the long run.
The average debt load for DVM's post-graduation is ~ $150K, and you're looking at around 6.8% interest. If you were to repay that over 10 years, your loan payments would be ~ $1700 a month, and you would pay a total of ~ $207K total in principle and interest. So, if there was no interest, you would save a total of $57,000 over that 10 years of repayment, or $450 a month. Or you could pay the same amount per month and pay the loan off in just over 7 years instead of 10. So you're better off no matter which way you slice it.
For reference, since we're talking about quality of living, that $1700 a month is approximately what you would pay monthly for a $275K house. That $450 a month you would save is enough to pay for a new car. Or you could use that money to raise children, buy your own practice, etc. So, yes, your quality of living would be greatly improved.
I definitely think that there are some who choose not to specialize because of the debt load. The loan continues to accrue interest while you're in residency. Also, most student loans undergo capitalization after a period of deferment or forbearance. Essentially, this means that the accrued interest is added to the principle, so you're paying interest on top of interest. It can really snowball. So, yes, I think not having to pay interest would make it easier for some to specialize.
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If you want to get an idea of what your financial picture will be after vet school, there are two very good financial simulators you can use. You can find them here:
http://www.finsim.umn.edu/# and here:
http://www.vinfoundation.org/AppUti...357&objecttypeid=10&redirectFromMiscDefault=1.
Both simulators let you play with a number of different factors to see what you will actually be able to afford after vet school, depending on different loan repayment terms. Can you afford to save for retirement, buy that house, have kids, go on vacation, etc? It's worth having a look.
The other thing to consider is that you you don't
have to spend $150K to become a vet. Remember, that's an average. There are a lot of ways you can lower your total costs, and they all add up. But, even if you do end up having to borrow that much, it is possible to pay it back in a reasonable amount of time. You just have to be smart with your money.
Don't wait until after your undergrad to make a financial plan!