I had a squier but now i've got a Vintage V100 and its pretty damn good for a cheap guitar, very versatile. It cost me £175 from ebay i don't know how much it'll cost over there
go itno your local pawn shop, see what they got in there.. you find some amazing things in ur price range.. i found a zakk wylde custom for $950...Look arouind enough and you'll get something good
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Kurt was in love with Fenders, so that's what I'd suggest.

But more importantly, I suggest going to a shop and just tryiong them out, find something you enjoy playing.
Populus vult decipi. Decipiatur.

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If you cut down on these costs students won't learn so well, effecting the "quality"...