American College football

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I was planning to attend in a DIII school for biology and play football. About 2 weeks ago, I partially tore my MCL and can walk/run in a hinged knee brace. My parents were already uneasy about me going to the school due to the tuition, and since this injury, they are strongly suggesting I go to a state college for less tuition and don't play football. I talked to my coach about this decision last week, and he agrees with my parents on the subject. He suggested a different state school (Division II) where he knows many people, and said I should train for a year or two to get better for the new position I will play (HB/FB) (Played center for junior and senior year, but am only 5'9", and can run a 4.8 40 yard dash). He then said I should either go to the coach and talk to him about walking on to the team (or red-shirting my first year), or go to the Division III school and try out there. I love football to death, and having this thrown at me is killing me. It will take a while to make my decision, and I would like to hear from as many people as possible before my decision.
(Image for height comparisons (Left is 6'2", middle is 6'1", and right (me) is 5'9")