lxs--
I'm going to CUNY next year for sure, and my funding situation is also still up in the air... but I have things a bit easier, because I already live in Manhattan and have a job here... and I qualify for in-state tuition, so that makes paying out of pocket a more manageable prospect. You should totally do whatever feels most comfortable, but these are some other things to consider (um, if you haven't already)...
If you could get a teaching job within the CUNY system (which you would be eligible to have after year one, I think) then your tuition would automatically be waived (and you would still get paid on the side!) The CUNY system is also (slooowwwly, I hear, so it may not help either of us) discussing the possibility of giving health insurance benefits to adjuncts. Also along these lines, if you can find work at the Met (and probably other large museums, but I only know for sure about the Met) they will pay a huge chunk of your tuition...
... and speaking of jobs in general, I had a really useful meeting with a current CUNY student who went to the same undergrad institution as I did... He told me that professors are excellent about setting their students up with good, flexible jobs in arts organizations around the city. He was very honest about the potential downsides of CUNY, so I tend to believe him about the positives. Maybe you could contact an advisor in advance and ask for suggestions?
I'm sorry the department hasn't been more forthcoming with financial aid news--it seems incredibly frustrating, especially for someone coming from outside the city. If you do wind up at CUNY, though, it will be nice to meet you!
P.S. Ha, it's a long story that isn't funny to anyone apart from the two of us, but a friend and I use "being from Chagrin Falls" as a metaphor for being generally anxious and gloomy... and if there is anything to make me feel as though I'm from Chagrin Falls, it's the grad school application process.