Should I get a new bike? What about security?

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totalBS

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So after riding the same bike for almost 10 years I get a nice little surprise yesterday when it turned invisible and cut its own lock. Needless to say I am beyond mad (especially because there were much nicer road bikes around and mine was a dirty mountain bike), but I must press on because it's gone and I have a decision to make. I am a junior in college and rely on a bike to get me to class on time. However bikes cost money which leaves me in a sticky situation.

1) I could get an old used bike that will be used for 2 years and hopefully be old looking enough to deter another theft.
2) I could buy a new bike and use it until the metal rusts away
3) I don't spend money and be 5 minutes late to a class 3 days a week

Option 1 is best for my transportation needs and possibly less likely to be stolen but I would get a real bike after getting out of college, so that's just more money
Option 2 is best for me because I wouldn't be wasting my money in the long term and I would have transportation but it would be a nice magnet for thieves
Option 3 is best for my wallet but it means I'm late at least 3 times a week

I would be getting some sort of road bike too, so I'd be upping the possibility of another theft regardless. I can get a new one for $150-200 and an old one for $50-100 maybe. Should I invest in this and which one do you think is best?

If I do get a new bike do you think a simple U lock would work? I got my seat stolen last year so I switched to a cable because my old U lock couldn't lock the wheel and frame together and I wanted to be "safer." However cables are easily cut through as I learned the hard way. So is a U lock really enough or should I go with a thicker cable or chain? There have been 2 thefts in the past 2 nights just at my apartment (the surrounding area probably isn't any better), so I need to make sure the entire bike can stay there
 
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