New York - tax and accomodation

[Elchorro]

Hello! 

I have been admitted to Columbia with $35k pre-tax funding package in addition to tuition waiver and health insurance coverage. I can also rent university accommodation - a room for circa $1200 or studio for aroud $1500. I am international student and I have never been to New York so I do not really know what those numbers mean. I have some questions and would appreciate any answers. Do you know how much is left after tax? Is there any unpleasant surprise around the corner? Can you get by in New York for that much? Are those rents good or should I look elsewhere for a better deal? If so, where is the best place to start. 

Those questions all seem pretty basic but googling wasn't very helpful so far.

 

[TakeruK]

I don't know anything about living in NYC, but I can comment on the tax question. I'd recommend you to budget around 15% of your income to go towards taxes. This is likely a (small) overestimate but it's better to overestimate expenses than the other way around. (The real number for most international students is between 10% and 15%, with larger tax rates to higher stipends like yours and potentially places with higher city/state taxes like NYC).

[GreenEyedTrombonist]

Living in New York can be very expensive, so I imagine on-campus housing is a better deal, unless you live further away and commute in (which I wouldn't do with a car; cars in NYC are not something you need/want). Plus side about budgeting in New York: you don't really need a car unless you need to visit upstate or something, so you don't have to worry about paying for gas/car payments/repairs/etc. Downsides are that the rent is astronomical. If you live on campus, I'm pretty sure you're getting a better deal. Plus, you won't have to figure out a commute plan, though you may still want a subway card for getting around the city. 

So, let's look at your funding in particular, taking TakeruK's advice about taxes.

35,000- 15% for taxes= 29,750

Now let's assume you go with the cheaper option and get a room instead of a studio and that you're there for 9 months (academic year) instead of the summer as well.

29,750-1200/month= 18,950

That leaves you with approximately 2,100 a month for food and other expenses. If you're living on campus you probably don't have to worry about utility bills or anything so that helps a lot and this shouldn't be that difficult (double check average cost of food and other expenses with a cost of living calculator).

However, if you're staying for the entire year, that leaves you with around 1,279 a month for food and other expenses. If you aren't going out to eat every day and don't have that many other expenses, this is doable. 

Also check to see if the program includes healthcare or if you need to get this on your own because it will change your monthly budget.

[AKACaz]

I'm a 4th year at Columbia who lived in CU housing for 3 years.

1) Depending on your departmental requirements, you will either receive just a full stipend, divided into semesters & summers, OR a lower stipend + paychecks for your teaching, adding up to the entire annual stipend amount. In years where you just have the stipend, taxes will not be taken out from it automatically and you will report the full amount as a stipend via a 1098-T form provided by Columbia (which details scholarships and grants). In years when I taught, I reported a 1098-T for the stipend and a W-2 detailing my work pay, which already had federal taxes, social security, and local taxes deducted from it. Either way: I have never paid a significant amount in annual tax in any year while I've been here, because, generally speaking, in New York City Students Are Poor. I've usually received small refunds, in fact. You can also claim a lump sum of spending on "materials necessary for your schooling" - books, a new computer, library fees, etc. - which will lower your overall amount to be taxed.

All that being said - I'm on a humanities stipend of ~30k a year so you, on 35k, might edge just over the threshold into needing to pay a little in annual tax - not more than a few hundred dollars, though, I would think. I'm guessing you're in STEM? Maybe once you get here you can join our union effort and help us fight for equitable stipends across the university ;-)

2) Definitely take the housing offer. Take it right now. I have never seen an inadequate Columbia grad apartment (and mine was pretty fantastic - a huge kitchen! In New York! It was a miracle!); they are very close to campus for the most part; and you will have a VERY hard time finding something cheaper in the City at large. You'd probably have to go all the way out to Queens, these days, to find a $1200 or even a $1500 place. Take the offer to get yourself settled, and evaluate later whether you want to move elsewhere. The $1200 shared deal (single bedrooms, common kitchen/living areas) has worked very well for everyone I know here who's done it.

On another note - apartment owners & landlords in NYC almost always request a guarantor, i.e. someone who can back you up financially. This person must be an American citizen and pretty loaded, so if you're an international student this could be hard to arrange. Take the Columbia housing. They do not require a guarantor - in fact, legally/technically speaking, the university is your guarantor.

And to answer the question about healthcare - you will get on-campus care through Aetna Student Health for 5 years, free. No co-pays for on-campus medical services including vaccinations, OBGYN, checkups, etc. If you need mental health services, you can see someone on campus for free or be referred to an outside network for $20 a session. 1 free dental cleaning per year, $109 each for any additional cleanings per year. No vision at the moment, but you can add it for a fee.

Finally - on 35k, even in NYC, you should be able to put a little away in savings to cover emergencies in case I'm totally wrong about this tax load. I've managed to save about 3k a year from my 30k stipend with an average 1000/mo rent and paying most of my and my partner's day-to-day expenses and commuting costs.

EDIT: this will probably be more useful than anything I have to say - Columbia's International Students and Scholars Office has a website to explain tax involvement.

Edited February 27, 2017 by AKACaz

[Elchorro]

Hi there! Thank you very much for your responses. That's very helpful and I feel safer now. @AKACaz I'm in Economics which offers additional fellowship on top of GSAS Dean's Fellowship and a summer stipend. In total it adds up to about 35k. The comment about healthcare is very helpful - I have researched it a bit and it's still a bit worrying. Especially when I hear POTUS talking about obamacare... I lived in Poland and Scotland where you very rarely pay any health fees, so it's a big change for me. I was told I could try negotiating try Platinum Plan, cause I have asthma. I'll see how this goes.

I will apply for student housing as soon as I am sure I will be going to Columbia. For now I am still waiting for other results.

Once again, thank you very much for all the replies!

 

[AKACaz]

The healthcare issue is indeed worrying at times - oh, to live in a country where they take it seriously! In general, though, I've found the Columbia system to be fine. I've used on-campus doctors, vaccine services, counseling services, and dentists with no trouble and small or no cost. The scary part is, as always in the U.S., with 'catastrophic' or emergency care, where costs can very quickly balloon out of control. On the bright side, however, we have an excellent hospital literally across the street from campus for our needs if such catastrophes were to happen (St. Luke's). The major difference that Obamacare has made, from my point of view, has been eliminating or lowering costs for medications: birth control is currently free and other medications & devices (including inhalers) are cheaper. If the ACA is repealed, those costs will likely go back up. They are still not ruinous, however. 

One last note on the housing if you do end up coming here - at Columbia you will find it very easy to go directly into the housing system when you arrive, as they will have space reserved for new students. If you are late with the housing information/decision/deposit, or decide you want to look elsewhere first, you will lose the offer and then it will be nearly impossible to get into the system later on, as they don't tend to/find it easy to accommodate people who are coming in partway through their programs. So it's something to be on top of!