there's nothing wrong with wanting to live far away. i made sure that all the schools i applied to were more than a few hours away so there would be no visiting from my parents! i wanted to get out too, i think it's natural to want to get out and be on your own. that always made my mom sad that i couldnt wait to get back to college after breaks and stuff, but then my dad would say that's how he knew he did a good job raising me, b/c i was able to be independent.
anyway, loans can def. be limiting, i'm with misstarlight on this one, i've got about 150K in debt plus interest and i pay 1000/mo in loan payments (yes i consolidated!). it's depressing but it's really not that bad, esp. since yours wouldn't be nearly that high.
your parents want what is best for you and it's hard sometimes to accept that your parents aren't perfect, but you just gotta understand they have their flaws too and they're not working off the same data points as you. at the end of the day though it's your life, and you're gonna be happy doing what you want, not what your parents what. congrats on college!!