Congrats, Matt! I want to take a photography class at the local college this fall, but I don't know if I'll get to because of work. Color would be awsome!
When I read what you said about the 8X10 and film costs, I was about to reply by pushing the paper negative, but I see that Charlie beat me to it LOL. We're both a couple of PN pushers... it's certainly addictive.
Anyway, to answer your question.... Yes, you can contact print. The paper acts as a ND filter, so a bit of extra exposure is required, but for me, 30 seconds is usually the longest I have to go. You can also use standard VC filters.
You can also go the other route and use a flatbed scanner, then invert in Photoshop of The Gimp--or just about any other graphics program, including Paintbrush. I've never done any tests to see specifically how different the resulting images are.
In a recent experiment, I loaded a paper negative into my enlarger and tried projecting it. To my surprise, the negative image was dim but perfectly usable. It prints just fine.
In Alt-techniques forum, there's a thread where we've been discussing all this. It's quite worth trying, at least once.
Anyway, again, congrats on the grade, and good luck!