Need to drop a class... how do I swallow my pride? (Psychology major)?

Who cares if your the subject of gossip. If you're too busy and stressed out the answer is easy, drop the course. There's no shame in doing it, especially if you're not going to get a good grade. It really sounds like you are over thinking this wayyyy too much. Experimental psych is fun stuff, just wait until next semester and get the A.