My next question is, why is the grinder and brewed coffee no longer adequate? I'd say you'll get better results with a quality grinder (Baratza Encore), and a french press or Clever Coffee Dripper, than you would with a $200 espresso set-up. IMHO, you can't make true espresso with $200 worth of equipment.
I am also a college student wanting what you want but I have read many times the more you spend the better espresso will be. Under 400 is a gamble I have heard. If someone disagrees please let me know as I'm still learning. I'm Currently saving money for baratza encore for my french press &aeropress
if you really want to get an espresso machine, you can try remanufactured Breville (from corporate website) or used ones off of craigslist. I'd advise sticking with aeropress. Doesn't require electricity. Also you can re-use paper filter, just rinse and dry.
I would frequent the local college coffee house; and wait until you can get something you will be happy w/. In my humble opinion, decent espresso for the lowest dollar starts w/, perhaps, a gaggia classic w/ pid. But even that is rather pricey.