You can def. do Europe on $1500. I spent $1500 in 6 weeks. Stay in hostels, get a bus or rail pass if you want to move around and, since you're a student, definitely go here for your flight:

http://www.travelcuts.com/

Travel Cuts is SOOOOOO good for student travel. If you want to hit a country people don't normally talk about but is really beautiful, try Slovenia and stay on the coast. Italy is right there if you want to do a side trip. Czech Republic and Hungary are cheap and really nice as well.