After several attempts of drilling straight holes through my knives (with a hand drill) I've decided that I need a drill press. Lining up the pins can be kind of tedious and I just need more precision. My budget is $130. Anyone have any recommendations? There are so many to chose from and I think it would be best to hear your personal suggestions and experiences. 

It's not just the drill press but the quality of the bits.  There is an order of magnitude improvement in quality drill bits over the usual home center stuff.  Save some of that budget to get a few good drill bits in the sizes you intend to use.  It'll be worth every penny.

One other thing to add to the list is a better chuck than comes with most low end drill presses.  The run-out from most lesser chucks is so high that even a good drill bit can have problems making a decent hole.  Assuming the drill press isn't too far out in the spindle itself, changing over to a better chuck is usually worth the expense.

Since your budget is so tight, there is not much variation in offerings.  Just stay away from the really cheap ones like harbor freight or discount charlie's crazy china-junk warehouse.  You might get more for the money by checking out pawn shops in your area for a better used one than you could get new.

Oh...and many of the benchtop units have REALLY short spindle travels.  It'd likely be enough for a knife but make sure it'll be enough for anything you think you'll use it on.  

With that budget go used.  You will be able to get a much higher quality DP.  Inspect it first.  You might even be able to get a full sized one.

I've seen a large number of imported low end drill presses that arrived from the store with a built in wobble in the quill.  I second getting a used one and checking it first *AND* using good quality drill bits!

I just went on Craigslist and found a 12" Darra James Drill press for $90. The owner claims it's in working condition. Think it would be worth checking out?

Jump on it. Better than anything made in the last 20 years, I would bet.

 

Vntage machinery have some publiction material available for this model (or series there of ) should you be interested; I also tend to agree with John.

UPDATE: I just bought the drill for $75 and it works awesome. Buying used is definitely the way to go

 

Used is the right way to go.  As said above tools 20-25 yrs old are many times better grade than new today.  Most of what is in either of my shops were bought at auction from multi generational shops going out of business.  Young people are told they shouldn't work for a living let the computers do the work and they will not follow their dad's & granddads in business.  I have found esp. in our area most of the tools were the best when purchased as they were making their living with them.  Drill bits were mentioned, exactly right on the box stores bits, look nice work once maybe, out of a pro shop much better if you can sharpen them. Same with files and hand tools.  Just know about the equipment you are looking to buy don't buy a worn out one X them closely before the sale, talk to the owner if possible  ask them about the condition.  No answer don't buy.

If I hear of a sale within 100 miles I take the trailer and a pocket of cash call a friend who also might be interested in the sale and head out.  First hr. of the sale you can usually tell how things will go for prices and what people are looking for.  Many days we come back with an empty trailer and a hand full of items in the backseat other trips the trailer is overloaded.  I try never to pass up a lawn sale or barn sale if I see any equipment there I'll stop as If they are having a bad day no one showing up bargains can be had.    Have to admit my barn is full of purchases I may never use but they  make great trading materials and I'm very cheap on what I will pay.