How to fix a longstay on the cheap?

Hi,

I'm daydreaming about moving to Peru and staying a year or three (while I study on an internet distance learning program). I dont know any Spanish, so its probably best I stay in a city where there are other foreigners. I understand that Cusczo and Arequiba are cheaper than Lima. So maybe one of those.

The thing is, staying in a hostel for months on end (paying 10 USD per night) will work out a too expensive for me. I was hoping I could find a room in a shared house for less.

I read on some other thread here, that cheap accommodation can be found (less than 150 USD per month). But where and how? How did you go about finding your place? Did you find it in a newspaper (maybe an english one), on the internet, threw an  agency, or just talking to the locals?

Thanks for any suggestions