Then they are either
1) Lying
or
2) Went to a god-awful undergraduate college
No offense, but if the average incoming GPA of an NYU student is a 3.29, then this means either every student accepted had a 3.29, 99% of students had a 3.5 and 1% had a less than a 2.0 average, or there was a fairly even distribution of slightly over 3.29's and slightly under 3.29's, with a smattering of very high GPAs and very low GPAs. Which do you think is most likely? I'm willing to bet the last guess, in which case, most of the class were barely B+ students... hardly top students at my school, nor any other I'd imagine.
NOTE: This isn't meant to bash NYU or their students, just to point out that their is some major ego-stroking and lying going on if most students are claiming they were the top-dogs at their undergrad. A 3.29 won't even get you cum laude at graduation.