I am also a college student and have 2 mercedes that i actually paid less than that for, $657, and $520. If you have time to spend just about every weekend, or at the least once a weekend a month keeping the thing running, go for it. You can probably get it to run with some difficulty. Find somewhere to get parts, and by all means DONT TRY AND RESTORE IT, you will just waste time and effort. I am glad I bought my benz's (both 280SE's) I can keep up on the freeway, or better. Plus a benz has more style, comfort and safty than most cars, and at that price you cant beat it. Not sure how the 220 will do on the freeway, so keep that in mind. If you dont have at least a weekend a month to devote to the car forget it, and if its going to be your only mode of transportation realize that the "weekend" can come whenever it wants.

Hope that helps
-Eric