Unhappy at elite college... Should I transfer to an "inferior" local school?

What issues are you facing? You may end up facing similar or different issues at other college as well.

Instead of transferring and retaking/paying two years worth of courses, just take a semester off for an internship or take a semester abroad to break the negative rhythm.

Do discuss your situation with your parents, academic advisor and mental health counselor before making any decision.

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