stay confident cutebag...I know exactly what you're going through, I feel like I am going through almost the same thing only my job is through Americorps and I am wanting to transfer to a different position. I have had the same awkwardness with my supervisor. It's nice to hear that someone out there is going through a similar situation.
Doesn't make it any less stressful for you though

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I've felt better this week since I've made some steps toward the transfer and it is looking more hopeful that it can happen, but I still have yet to have an interview and have some more concrete steps.