It is not a wise decision to drop your College,it does not matters a lot whether the College is Local or at distant place.Since you are pursuing your 3rd semester so I would recommend you not to drop your College,but you can prepare side by side for your Engineering Entrance test and try to score a good rank in order to get admission in reputed Engineering Colleges this time.
Moreover If you will be unable to get a good College this time,then you can continue your current session,so this will be a advantage to you.
Top Engineering Colleges in India:
College of Engineering,Anna University,Guindy
PSG College of Technology,Coimbatore
Manipal Institute of Technology,Manipal
Institute of Technology,Nirma University,Ahmedabad
Thapar Institute of Engineering and Technology,Patiala
Punjab Engineering College,Chandigarh.
In order to get a seat in reputed Engineering College,so you must work really hard for this.
All the best.