Though dorms are probably the only time in your adult life all your friends are walking distance away and free to hang out.
There is a huge variation in quality of local colleges, and in opportunity that arises from them. As every reader here knows, Americans are super class-conscious and pretty competitive, so a good local school will seem like "settling". And, they're not free by any means.
Getting a bad degree from a cheap/bad public school seems like a bad life decision. There is so much more to gain by not getting tattoos and looking presentable instead of getting a degree from a school people don't respect
As a test, look in your IT department. I wouldn't be surprised if it's full of people from community colleges and lower ranked "cheap" colleges with engineering degrees. I like the idea of just going to the cheapest school but ranking unfortunately matters to a lot of employers, and ranking is usually correlated with cost.