As others have said, you simply will not find a digital SLR in that price range, probably not even second hand.
However, you ask if you'd be better off buying a normal digital camera (a digital compact). Since you state that you're doing a photography course, I'd say no. Digital compacts are great for casual use, however a course in photography is obviously designed to take you to the next level. SLR's have much more functionality over compacts, allowing you to completely control the photograph you are taking.
Semi-SLR's would also be a good choice, with the same functionality as many digital SLR's, just without the interchangable lenses.
Just remember, however, that buying a good camera will not make you a good photographer, and it is about how well you can use the cameras features. A brand new camera with so many megapixels (which people seem to obsess over - more megapixels doesn't equal more quality) isn't going to mean anything if you don't understand the basics of photography. This wasn't meant to sound condescending, of course - merely a warning.