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Transactional sex among female students with old men is one of the major factors that fuel the spread of HIV and AIDS due to extended sexual network. In Ethiopia, though various studies had been conducted to assess the sexual behavior of female students, there is still a paucity of researches that address transactional sex among young females with older men.

The main aim of the study was to assess the magnitude and factors associate transactional sex with “sugar daddies” in relation with HIV/AIDS. A cross-sectional study using mixed method was conducted among 620 female students in Hawassa town, SNNPR, Ethiopia from September 2010 to May 2011. Students were selected randomly from 5 preparatory schools and a snow-ball sampling technique was used to interview 10 female students involved in transactional sex with “sugar daddies” for the qualitative study.