I am a former Badger and am truly sorry that you haven't found some good time at The Party School.
Nonetheless, if I were you, I would listen to your parents. Try to finish off your freshman year and earn some solid grades at Madison. Then, leverage your experience there as a strength to transfer out to a comparable or better school. If your interest lies within one of Wisconsin's many highly ranked programs, you may need to make a really good case in your transfer application why NYU or XYZ is a better choice without coming across negatively.
On a personal note, it usually takes one a while to find his/her own niche groups in Madison. Keep looking.