you are still in school and you are paying your own way? Congratulations! Lots of college students don't know what that is like.
So you sound like you want to make a responsible decision.
there's some good advice here, and some not so good.
Buy something that you won't spend all of your money, and get something reliable and with a warranty. Don't mod it. A used VW Jetta is a great college car, and usually have a good warranty.
Finance some of it, so you build good credit.
When you get out of school and have a higher income, then step up.

I know it will be tough seeing some of your peers in their souped up rides, but remember, they probably aren't doing it on their own.