If $$ was no object (or, less of an object), I would live -- if I was going to P&S -- in columbus circle; it's just an easy ride on the A train away from 168th. That or somewhere in Chelsea (which isn't
that bad by NYC standards, rent-wise) so you can be near the Whole Foods on 24th and 7th aves -- the best supermarket in the country! (okay, so I am a supermarket junkie, but they have great sushi that's pretty reasonable there).
Keep one thing in mind though people when you're thinking about living downtown (which, I am absolutely a fan of -- Washington heights is obviously not the epitome of things Manhattan). Remember that for your 3rd year, when you have to be at the hospital a** early, the express trains all run
local before 6:30am!!! Which, obviously means you have to rise even earlier to make it to P&S.
That being said, there certainly are advantages to living in Bard (economic savings being the obvious one, social reasons being the other), but I know
tons of P&S students (my cousin, whom I am very close with just graduated and I spent a lot of time with his med school friends) who lived off campus (and FAR off campus) and did NOT feel like it really hampered their socialization with the class.
Money issues aside, there are TREMENDOUS advantages to living downtown -- I mean how nice would it be to be able to leave the 1 mile ring around P&S when you go home -- spending all of your time in such a confined area (esp. when it's 168th street) is seriously depressing.
Live off-campus if possible! Even your 1st year!
(my impassioned plea to take advantage of the greatest city on the planet!). . .