> $500/month? But a simple train ticket that takes you 600km away will set you back $100. Here in Europe at least.
I'm from Europe (NL) and some friends of mine did pretty much that, during college. I don't know exactly how they did it, sorry, travelling's not for me so I didn't pay attention to all the details, but they did pull off travels for very cheap.
One trick is, there's a lot more to trains and public transport (also busses--yes it may not always be comfortable) than first meets the eye. Check out local and national train company websites, ask around at the station where they sell (sometimes you get a really nice person behind the desk, and they'll help you out way beyond expectations, pay attention to what they do and what it's called, so you can order that ticket again). There's probably a bunch of Internet forums sharing tricks as well. I've booked 17h return train trips to Vienna for about 70 euros.
Another trick is sharing rides, if you need to get around in Germany (to and/or from neighbouring countries), try mitfahrgelegenheit.de, it's a carpooling website. At first I thought it'd be crazy unsafe, but I've met the coolest people on those trips.