Do your parents want you to live at home and commute the hour to and from campus?
Are you thinking about applying to these schools or have you already? When do you want to transfer there? Next fall?
I guess what I would do, if you haven't already, is apply to both schools just to make sure you do have two options. If you're not going to start until the fall or later, I would go to the doctor now to change meds. That way, you're still near your current doctor while you're adjusting to the new meds, in case you need to switch again or you have trouble during the interim between your old med and new med working. Then see how the next couple months go. Personally, I agree that the school farther away sounds like a better fit for you. Can you and your friend be roommates/get an apartment together? You can always start seeing a new T and pdoc right when you get there, too. You also wouldn't be so far away that coming home would be difficult. It also doesn't mean which ever school you pick has to be the one you graduate from -- you can always transfer again (a pain, I know, but still an option). You have to do what you think is right for you, not what other people think is right. You have to live with the decision. What's more, you'll either prove (not only to your parents, but to yourself) that you have learned the necessary skills to manage your anxiety and succeed, or you'll learn that that wasn't the right choice at that time (not a failure, mind you), you'll cope, and you'll learn new skills to help you the next time.
Keep replacing negative thoughts with positive ones -- "I won't be able to graduate and get a job" to "I can and I will graduate and get a job."
Good luck!