So to summarize, your parents really want you to go instate (UW-Madison), but won’t give you a dime for instate tuition? Let’s focus on that. UW-Madison costs what…$25K per year? How much do you have in savings? You can take $5500 the first year in loans.
I feel that they are bluffing. I would call their bluff and tell them you are attending CC or focus on Alabama. Did you apply to Alabama? I think between the federal loans of $30K over 4 years and working you may be able to afford room and board at Alabama. You could move off campus as a junior or senior and save money on room and board.