One thing to think about though is what else are you going to be doing in the next year? Unless you have significantly improved your application with a new research position or another degree, it is unlikely that your chances of admission will be much better next year.
It sounds like since it's a masters program, you'll only be shelling out $18000 which isn't too bad in the bigger picture. That way, you can also add a masters degree to your resume when you reapply which should definitely boost your chances.
On a side note, I definitely agree that its a lot harder to get into grad school than I expected. Especially in my field, the stats are around 10-20% acceptance rate.
Good luck! It's a difficult position to be in!