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NYU is a very good school. It is constantly improving. And it's located in a great city, with plenty of sources of entertainment and inspiration. Nevertheless, it costs way to much to attend. For most people, I believe that all of the benefits I mentioned above are not worth the high cost of tuition and housing. You can get a good liberal arts education at many other schools, including state schools. Aside from its prime location in Manhattan, NYU is not special.
I have benefited immensely from the school's career center, which is well connected with the business community in New York. In addition, NYU offers some great study abroad opportunities.
On the other hand, the community is very impersonal. The level of education and student involvement is depressingly low. It's easy to get lost in the crowd.