So do most people invest a couple thousand dollars in legal fees? What about kids for whom that would be over half of the money they have to their name?
I recommend using something like clerky.com for incorporation and post-incorporation setup. They might also be able to help you with the later parts of the process.
As far as the cost goes...you gotta spend money to make money. Don't do any of this until you're absolutely sure that you have committed investors, and you'll minimize your risk.
Check with your school. Perhaps they have an entrepreneurship program that can help?