Transferring after sophomore year

<p>Hello all. I am a college sophomore finishing up my third semester at a state college. I am considering transferring to a small private liberal arts school but am worried about financial aid and whether or not I will be accepted.
Current GPA: 3.8
Extracurriculars include creative activities which I have been active in for a while (performance type)
I am on a need based scholarship that covers all of my expenses, which is why I am worried financial wise about transferring to another school. I am the first in my family to graduate high school, first to attend college (obviously), and am also a minority (if that makes any difference).
I want to transfer for a better education and academic environment. I don't feel like I am being challenged here and I think I would really thrive in an environment other than here (I feel like I was challenged more in my freshman year in high school than here). </p>

<p>Any advice will be appreciated.
And also, what are my chances with my current gpa?</p>

<ol>
<li><p>We need more facts. What is your major? What schools are you applying to? What are your ECs? </p></li>
<li><p>Yes, being a URM makes a huge difference, and you should most definitely leverage that to your advantage if you can.</p></li>
<li><p>If money is a problem, transferring to a small, private LAC may be tricky: they’re very expensive, and financial aid is notoriously bad for transfers. I would call the schools and talk to your parents to see exactly what’s available for you. </p></li>
<li><p>I’m tempted not to grace it with a response, but to answer your GPA question: Yes, it’s very solid. Keep it up where it is to maximize your chances of transferring =)</p></li>
</ol>