It might also be worth trying an L-lysine supplement (dosage matters, try 1000mg twice a day) and a "stress formula" B-vitamin. You can get both at a decent grocery store or Target/Wal-mart. Store brand is fine and way cheaper than GNC.
I tried the Lysine on the advice of my dentist and it worked well. I had to keep taking it for nearly 6 months. First time I stopped suddenly and my lips started peeling again. A few months later I gradually reduced the dosage and was able to quit taking it. The stress formula B ("Stresstabs" or the generic equivalent) plays to the idea that some B deficiencies cause peeling lips.
I'm not sure what all you're allergic to, but I found using an exfoliant specifically for the lips helped a lot. I was able to get the dead skin off without tearing the deeper layers and not pick at them. Philosophy makes one, so does Smashbox (and Aquafina has one carded with the lip balm at grocery/discount stores for cheap). If you're near a Sephora, you can hit them up for samples of the higher end stuff and try it before you buy it.
Stress probably isn't helping... try to eat right, get enough sleep, workout regularly (no problem at school right?). When I was in undergrad, my hair was falling out from stress. Peeling lips beats bald spots right? My lips have been normal since Spring, and I recently had a really bad case of dehydration (like go to the ER for fluids bad) and my lips were dry/chapped but didn't start peeling off! After that, I might be willing to call myself cured...