You should definitely stay on the strip. Your trip will not be the same if you stay off the strip. That's where all the action is. If your friends are really that broke, they shouldn't be going on vacation. Seriously though, if you must take the cheaper route, there is a Travelodge on Front Beach Road not far from the strip. They should have some pretty cheap rooms. You can still have fun, but your hotel experience won't compare to staying at a good hotel. Half the fun of spring break is partying at the hotel. You can always crash a hotel and party there if you need to.