Hostels in the Fairbanks Area 

Billie's Backpackers Hostel
2895 Mack Road (off Westwood Way, off College Rd.
(907) 479-2034
$20 night, coed rooms with 2 to 4 bunk beds (total capacity 20 beds)
meals cost extra
bike rental, laundry facilities no smoking or drinking. Cater to the overseas visitors.
Website

Boyle's Hostel
310 18th Ave. (South Cushman area)
(907) 456-4944
$14 night, 19 beds, 
7 small private rooms

Fairbanks Shelter and Shower
248 Madcap Lane (Farmers Loop area) (907) 479-5016
$14.95 night, 5 beds, dorm room, 1 Sgl. rm, 
1 couple's room

Grandma Shirley's Hostel
510 Dunbar Ave. (Trainor Gate area)
(907) 451-9816 (last time we tried it, it was disconnected- they may be gone for the winter, so we are leaving the number here in case).
$16.25 night, coed rooms with 10 beds in one, 4 in another (bunks). Paid laundry services available.
Price includes:  kitchen use, morning hot drink, local phone  calls, gear storage, towels and linens, e-mail, bike loans. 
(Note, we had their website link, but it seems to have disappeared!)

Hostels can be a low cost alternative to hotel rooms, but remember that you "get what you pay for." 

Do not expect privacy, private phones and TV's, or private baths and maid service. Most hostels post rules, and chores are divided up among the residents.

Billie's Backpackers Hostel

Grandma Shirley's Hostel, in summer.

Grandma Shirley's Hostel, in winter.