It depends on what you want career-wise. If you wanted academia, then definately transfer. If you want a V10 firm, transfer. However, if just want any biglaw job, then the decision is much more complicated. While you mention most students at your school stay in the state, this doesnt necessarily mean that your job options are limited to that state. You could probably find a job in the region of your school, but depending on the recruiting at your school, you could have to do more of the recruiting. Most students attend schools because they are happy with the state and region, so they tend to "place" themselves within the state/region. If you arent content with either, then definately transfer.
Also, does the scholarship have any requirements to keep it for 3L? just somehting to consider.