Depending on where you work in Palo Alto, you might be able to live further away and commute. Union City/Fremont area is much cheaper and there's a bus that will take you across the bay. I'm not aware of anywhere in the area that you could find something for $1000, but maybe with roommates it could work.
You should check with the company and see if there's anything they can do. I really hate that some companies exploit interns by offering such clearly unsuitable amounts for living expenses. If they live and/or work in Palo Alto, they know how expensive it is.
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Depending on where you work in Palo Alto, you might be able to live further away and commute. Union City/Fremont area is much cheaper and there's a bus that will take you across the bay. I'm not aware of anywhere in the area that you could find something for $1000, but maybe with roommates it could work.
You should check with the company and see if there's anything they can do. I really hate that some companies exploit interns by offering such clearly unsuitable amounts for living expenses. If they live and/or work in Palo Alto, they know how expensive it is.