I think this depends largely on whether you’re set on getting your PhD at NYU. I’ve heard that NYU tends to strongly favor their masters students when admitting to their very selective PhD program. I’m starting my PhD at Northwestern this fall and I only have a B.A. from a large, not so prestigious public research university. Ultimately, I didn’t even consider NYU because of the price tag on the M.A. If you have the financial resources to justify going to NYU, I’d say go for it, but I’d never suggest someone take out $100,000 ($60,000 tuition plus cost of living in NYC) in loans for an M.A.