Do what you can afford. You don’t want her to take on too much or any debt (if you can avoid it), especially if medical school is in the future. That said, she is still in high school and could change her mind in the meantime about what she wants to study and where she wants to go. Going out of state can be a wonderful experience, but it is not the be all and the end all and it is not essential for a good college experience. You also have to keep in mind that kids have their whole lives to live somewhere else. I know kids who were determined to go far away for college, they went far away and are now living and working 10 mins from where they grew up. I also know people who went to college close to high school and ended up moving across the country after college for work. You never know where people end up…
Also, to keep costs down you can see if your state has tuition and reciprocal agreements with neighboring states or something like WUE, where kids from certain states can attend certain OOS colleges for a discounted price.