If your daughter wants to go into medicine I’d limit the debt she takes as an undergrad. She can only borrow ~$5500/year on her own. With your current financial picture you probably can’t cosign for more, nor should you.
A lot of families can’t pay out-of-pocket for residential college. Our kids start at community colleges or commute to our local state university. If your net cost at AL is ~$11k, you might be able to swing that with the federal student loan, summer work earnings from your daughter, and a little help from you. But if you can’t contribute anything, I’d look into the WI public schools. There are plenty of smart kids whose parents can’t pay for name brand schools. Your state universities are probably full of them.
Have you ever considered homeschooling your younger daughter? The [WI homeschooling regs](Start Here – Wisconsin Homeschooling Parents Association) seem reasonable and might take some pressure off of both of you. It might help cut your expenses some too.