Mastering out/Transferring Advice

[Microbio]

I have just finished my first year of my PhD in biomedical sciences at a very prestigious university and I'm still really unhappy with the program. I did great in all my classes and rotations and I have joined a lab thats kind of a good fit, although has some issues (my other two rotations ended up not having the funding to take me so although this lab is good, it was not my first choice). I moved far away from my family and significant other to come to grad school and I just find myself really lonely here and unable to adjust to living in a big city.

I am currently considering a few options - mastering out at the end of my second year and just looking for jobs (I've heard/seen theres a lot of industry jobs that are better for just a masters) or mastering out and reapplying/transferring for a PhD at my undergrad university which is closer to my friends and family and I'm much happier living in that city. I do not plan at all to stay in academia as a career. 

I feel like in academia it can be hard to justify this decision with being unhappy but my happiness hasn't improved over the course of the year and everytime I'm closer to my family I think about how much happier I am there. I just can't imagine being stuck in this city for another 4+ years by myself. 

Any advice on mastering out? Who were you able to talk to in your department to actually set that in motion? How "taboo" was it to deal with and did you face backlash after you decided on it? Also advice on transferring - how do you spin this type of situation to a new institution and how hard is it to get accepted as a "transfer" (although i understand I'd be starting from scratch in a new PhD)? Also advice on who to contact at the university I intend to transfer to?