In this condition, if all original parts, I think value $500 at least, in an expensive market, I think San Diego might be such a market. Looking at completed auctions on eBay, the bare frames sell for $270-300. The compete bikes I'm not sure, they go unsold at $850+ but I expect they'd fetch $500-700 pretty easily.
Using it as a college bike is tricky. If you lock it very diligently TO a real bike rack using a quality U lock around seatstays and rear wheel AND a chain or cable around front wheel and frame, and don't leave it out at night, it should be okay. Other bikes around it will be much easier to steal. My son is riding a 1986 Peugeot PX, basically the successor to your bike, to high school and it has survived the year. If you use a lesser locking method, or leave it overnight, it will disappear.
You might consider finding some way to protect the decals, if people bang bikes together in the racks. A $0.50 piece of black foam pipe insulation around the top tube can also protect it from dents due to someone's dropped U lock. As well as uglifying the bike a bit, which is good.
For sure, if you run across a cheap old mountain bike for $100 sometime, I'd pick that up for the beater college bike. Lots of nonfunctional bikes get abandoned at the end of the year, does your college sell those off? You can fix whatever ails them and then not much worry about theft.
Totally agree with jyl about using this bike as a "college bike". I guess being in college and already having the bike, you don't really have a choce at this point but I would still try to avoid at any cost, leaving it outside on a bike rack, out of your sight (even with locks) while you are in class. Also, park it EVERY night next to your bed wherever you are sleeping, and not locked out on your porch.....
In the college I went to, which was very bike friendly, our professors let us park our bikes on the sides or back of the class rooms, within our sight, while we attend their classes. See if you can do the same, as it will be so much better than leaving your bike out of sight for even the shortest time locked to a bike rack. College campus theives can go through locks like butter if the bikes are desirable enough for them to steal, which this one definitely is. So I hope you have good luck in keeping it in college with you.......