College 2, 100%. But only your parents can say if the finances will work. Of course, many students can have a fine college experience as commuters. But if you really want to find your feet and it won’t break your family’s finances, it’s better to gain the independence of living at college.
I’m not seeing anything about #1 that sounds interesting or exciting. You have much more positive things to say about #2, so if your family can swing it, go there.