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Milan
Places to Stay 

I stayed at a convent for rather cheap but it was for girls only and had a curfew. We didn't plan on going out so it was perfect for us. I was warned to stay away from the HI hostel as it was a bit of a hike outside the city and not that great. Check out a few guidebooks like Lonely Planet or Let's Go for some ideas for pensiones. Milan isn't the cheapest place though but look for one or two stars. They're the cheapest. 

I stayed at the HI hostel and found out why people say HI hostels are institutional. but, it was clean and cheap and i met a pair of travelling companions there.