Looking for inexpensive hotel suggestions near American University located @ Massachusetts & Nebraska Aves. preferably close to the "Red" Metro line. Thanks
in advance for any input.

There is a Days Inn on Connecticut Ave and a Holiday Inn in Chevy Chase, Md. AU is in a high-end neighborhood, so budget choices are few.

Wouldn't recommend the Days Inn on CT Ave. unless you're desperate. My suggestion would be to look further out the metro line to the MD suburbs.

How about The Quincy at 1823 L Street NW ?? -- it appears to be on the Red Line going out to AU

The Quincy is fine, it's just not near AU. It is in downtown DC, although you are correct it is on the Red Line. You will take the Metro five stops to Tenleytown and then get the AU Shuttle or a Metro bus or walk. Both the Days Inn and the Holiday Inn are just one Metro stop from Tenleytown.

IMHO, as long as your hotel is convenient to the Red line, it doesn't matter whether you ride one stop, or 5, or even more. The ride between stops is just a few minutes; personally I'd be more concerned about the distance between the hotel and the nearest Red line station, rather than from the station to Tenleytown station.

We stayed in one of the larger rooms at the Bethesda Court Hotel two summers ago and thought it was very nice and reasonably-priced. It is the only U.S. location of the Golden Tulip chain, which has sites all over the world.
The hotel is just off Wisconsin Ave. about two blocks from a Metro stop and convenient to numerous good restaurants, movie theaters, and limited shopping. It's also only a few stops from Chevy Chase, with more good restaurants and considerable shopping.
Check some web sites for current reviews.