I would like to convert my wife's collegiate to a 3-speed internal hub. The easiest way to do this would be getting a rear wheel from an old breeze with an aw3 internal hub. The only stuff I have been able to find are complete breeze's going for $150 on craigslist locally, or buying a hub off of eBay or wherever and rebuilding the wheel. Question I have; anyone know where I can get a 3-speed rear wheel or wheel set, on the cheap to fit this old schwinn?

Where are you located? There are bike coops/recyclers that often have cheap wheels available. You might be able to find a junked breeze wheelset.

Or find a modern cruiser with a 3 speed hub and use the wheel set on the Schwinn but get one with a coaster brake. This way you can use regular 26" tire sizes. They are normally alloy rims and lighter.

I live in Indianapolis, a coop would be awesome. The wife wants nothing to do with a coaster brake

I don't know if there are any coops in Indy; I hope someone on here knows the area better than I do.

I looked on your Craigslist; there are some Breezes a bit cheaper than $150.