There are some public schools which offer scholarship for MS. I have some friends in ME, CE and EE are doing their MS with financial support.
Seeking financial aid will definitely not affect your chances of admissions. I think most schools have an option for you to choose to apply for financial aid, or automatically consider everyone for this aid. Why don't you email or call them to check this out?
If UCSB is very good in the areas you are interested in, then why not? Taking a MS in one school and a Ph. D in another will take you two more years then directly a Ph. D.