Having friend in the movie business, I understand student films, and I've seen quite a few. Most of them make an honest effort to be good. They try hard, and sometimes they fail, sometimes they succeed. This fails. Miserably. I'm sick of low-budget filmmakers who think that not using a tripod makes their film "verite'." It doesn't. It makes it nauseating to watch. Add to that all the little details that make it irritatingly bad, such as: TV reporters wear makeup. Lots of it. Ms. Marsh appears to be wearing none. Editors have the messiest offices in the known universe. They don't look like a vacant office with a stack of newspapers on the desk. And who uses white out? (It was on the desk) If someone is so insane as to need a straight jacket, she is NOT going to be in a regular hospital bed. Why not just put her in a chair staring out the window? TV cameramen use tripods for on-the-street interviews. Always. And wireless mics, too.
All this is just from the first 25 minutes. I couldn't stand to watch any more. The writing was abysmal (it would have been better to let the actors improvise), the camera work looked like a 5-year-old who stole daddy's camcorder, and the acting was... well, it was lousy too. A lot of bad actors, if they're well-directed (like Heather Graham), can still manage to not ruin a production, but the directing is so vacant that the acting really drags it down. Not that it had far to go.
Don't waste your time on this. To see how to do a low-budget horror flick right, see the first Evil Dead.