I think you go to where you have the best experience. SLO is probably better but there will be plenty of internships in jobs and San Diego as well.
I’ll tell you this - driving 40 miles each way (80 miles a day) has cost - gas, maintenance…just think when you need new tires or brakes - so perhaps the $32K is really less.
btw - you cannot borrow $32K from the federal loans - are your parents going to take on debt?
To me - if you can go away to college, it’s best to go. How will you handle the commute when you need to go back for a meeting, project or what will you do all day as you wait for said meeting or project. Living at home and going to SDSU to me, would seem not easy.
In the end, where do you feel most comfortable - that’s where you should look toward.
Good luck.