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I hate student loan debt as much as the next girl but I think he should transfer. My fiance went to a Top 30 law school for free and I went to a 2nd tier school for free. We still have six figures in student loan debt. If neither of you want to stay where you are, then he absolutely should transfer, because the better your school, the more mobility you'll have to end up somewhere you both want to be, both doing what you want to do. If he can do the big firm lifestyle for a few years, you can get rid of all that debt and have a lot more options available to you.
Forgot to comment on the long-distance thing - I was in an LDR all three years of law school. You can make it work if you know it's only temporary.
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