I don't know much about UChicago's program at all, so I'm afraid I can't offer much in the form of weighed advice. But I can say that I disagree respectfully with the above - I'm finishing my two-year MA in NSSR's Liberal Studies program in May, and have recently been accepted into Columbia's PhD in my field (Art History). It couldn't be further from the truth that the school (faculty + admin) is hostile to its graduate students. The chair of the program and all of the long-term faculty are deeply committed to their students, and because the program is a terminal masters, the level of peer-competition is friendly, never aggressive or disheartening (or, at least that's the case in my cohort). Because it's essentially a critical-theory degree, with an interdisciplinary foundation, the people that I know there who've enjoyed it the most are those who enjoy the opportunity to spread their wings, as it were, but also have a firm and directed trajectory for their own research.
NSSR does not offer a PhD in Liberal Studies (and with good reason, but that's just imo), which means that were you interested in continuing on to the PhD at NSSR, you would have to switch disciplines. (It's done, usually into Philosophy or Political Science, but it's not very common.) The reality is - and this may be where the previous comment is coming from - that NSSR is part of the larger umbrella of The New School - which includes Eugene Lang College, Parsons (Design), Milano, Mannes and the NSGS. It's a monster: the campus literally consumes a huge chunk of Union Square and below. This often leaves students in the smaller schools feeling disconnected from the Big Cheese Administration and its decisions, which ultimately do affect student life - there's been a lot of tension recently over the President, for example. But within the little bubble of NSSR, I can only say good things about how the faculty and immediate administration respect and advise the students there. NSSR also, unfortunately, doesn't have much money to give out - the most common MA funding is about 50% tuition remission. My second year I was lucky to receive more - about 90% - but they only provide one full tuition remission a year, and no stipends (although there are plenty of opportunities to teach at the graduate and undergraduate level).
I'd be happy to answer any more specific questions you might have about NSSR; I'm sorry this is just a bit of a general overview addressing the above. I can say that I've really enjoyed my time there: I'm a stronger academic for the exposure to literature and scholars/critics/writers/professors I never would have been exposed to in my own discipline, and I don't feel that having NSSR on my resume has affected my own career trajectory negatively in any way (except, of course, for the loans).