I get $295 for the Nokia 5800 now. Why I recommend it?
It has a 3.2" screen.
The browser is better than what you get on the Cookie or Star. The built in browser is based on WebKit, just like mobile Safari on the iPhone. If you don't like it, you can have alternative browsers in the Opera Mini or Skyfire. These browsers can run Flash, so you can watch videos.
The phone allows you to tether ala wifi with the Joikuspot, or with USB using Ovi Suite which comes with the CD. By tethering I mean turns your 3G data connection into an internet connection for your laptop even your iPod Touch.
There is more variety of software and games for the Nokia 5800, not as much as the iPhone for sure, but better than the Java stuff on the Cookie. Software includes Twitter and Facebook clients.
3.5mm jack for headsets.
RealPlayer for video playing.
3G & wifi.
The whole phone can be better described as a mobile computer. I would say that as a college student, there will be many situations where such a device would come in most handy. Its slightly above your planned budget, but consider the difference, more of an investment.