New York is great. Terrifically expensive, even in the surrounding areas, but if you can find cheap housing it's very doable.
I lived on the UES for ~7 years while I was in grad school. My stipend was only $25K/year, but I had subsidized housing for ~$550 a month and pretty much was able to live OK without taking out any loans. Granted I didn't really make any big purchases and ate a lot of ramen, but I was still able to enjoy myself.
Good luck. It's an amazing city to live in. Still miss it. =)
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