I was told by both programs I applied to that they would let me know this week...needless to say, I have been refreshing my email every five minutes and staring at my phone, willing it to ring. All there is left to do is pray and wait.
Personally, I would go for the fully-funded PhD. From what you've said, it is still a really good school. And I think that being close to your POI is really important. Moreover, with a PhD you would have the opportunity to go straight into academia, which may interest you if you like research.
Regardless, it seems like you have two really good options before you. Congrats!