If I was in your position as a new college student with soon to be limited funds, I would get neither.

ITR => theft prone

E36 M3=> maintenance costs can be high. You won't be making money while you are in school. Jealous person may key your car, sucks but people can be mean.

I would consider the following cars that are around $20K:

WRX => powerful, can be modified to handle well, in your price range, reliable, can carry a bunch of friends no problem (when you want to hang out), works well in any weather.

2000-2001 S2000=> powerful, handles well, reliable but, is very limited on seating capacity and trunk space.

any year Miata=> not as powerful as S2000 which is good because you may not crash it and the insurance will be lower. But similar problems to the S2000 with lack of people space.

2002 - 2003 Civic Si=> true not the best handler, but can be made to go fast, reliable, carries people, etc. etc.

2002 - 2003 Acura RSX Type S=> true not the best handler, but can be made to go fast, reliable, carries people, etc. etc.