I lived in a halfway decent apartment on Long Island while as a student and on flight instructor pay...you just have to really do your homework and search around. Yes, bottom line is that it will be more expensive than anywhere else...but you can still do it and not live in some haunted house. I think it all really comes down to your other expenses, as well as your perception of what is "nice" and what is a "dump". If you just have the usual car/rent/loans/food combination, and you are somewhat of a frugal person....$35/$40K is definitely survivable on Long Island. I did it for 5 years, making much less. I think people just hear horror stories and the rent and taxes and don't even give the old college try. As a matter of fact, I plan on moving back there (home is home) as soon as I get some seniority and better schedule at my current 121 job...and again...I am not making anywhere near $35/$40K.
And on a side note...I have known several people who have worked for EFI with mostly good report cards, minus the little grumblings here and there that you get at any job. Happy New Year.