INSIDE EDITION Investigates Sugar Daddies

People may raise some eyebrows at the way some young people are choosing to cope with high tuition costs. Lisa Guerrero and the I-Squad have been checking out 'Sugar Daddies,' who help pay young coeds' bills, often with one very big catch.

The ads for sugar daddy websites are everywhere, and with the cost of college skyrocketing many college women are signing up.

Several of theses ‘sugar daddy' websites are tailored to young coeds as a way to get their college tuition and bills paid for by wealthy older men. But there's typically one really big catch.

"You're there to open the door in your high heels and lingerie and be like hi welcome over," said a sugar baby who agreed to be interviewed about her experiences on some sugar daddy websites.  

Struggling to pay off thousands of dollars in college loans, this sugar baby joined a website called, where she found several sugar daddies willing to pay her college expenses.

"He did above and beyond, took care of my school, my apartment, everything," the sugar baby remarked.  
She was able to get two full years of college paid for.

"You do understand though that some people would look at this and say well that's the prostitution," asked Lisa Guerrero. "You are trading sexual favors for money or gifts."

"I understand some people would think that way. I definitely don't. I'm not on the site saying I'm $500 a night, call me, leave the money on the stand," answered the sugar baby.

Like many of the Occupy Wall Street protesters, a New York journalism student, who asked to be called "Kelly," is struggling to pay off more than $50,000 in student loans. Kelly agreed to work undercover for INSIDE EDITION and sign up on several sugar daddy websites to help us determine if some sugar daddies are taking advantage of vulnerable coeds.

And it didn't take long for men to contact her with all sorts of offers.

One post Kelly received was from a sugar daddy looking for "adventurous sex."

Another sugar daddy offered Kelly "$1,000.00 a day."

One of the first men to communicate with Kelly was a 45-year-old Manhattan sugar daddy. In his profile on the website seeking, he claims a net worth of $2 to $5 million.

Kelly met him at a cafe near Wall St. while INSIDE EDITION had hidden cameras rolling.

"So you want to have sex with me?" asked Kelly.

"Yeah," said the sugar daddy.

"So like we have sex a few times a week and you pay for what tuition, bills, rent?" asked Kelly.

"Something like that," the sugar daddy replied.

He offered to pay Kelly up to $3,000.00 and this is what he wanted in exchange:

"I'm looking for slightly unusual things to do. Other people, threesomes," said the sugar daddy.

But you'll never guess what else he had in mind.

"What is your threshold of pain?" he asked.

"Excuse me?" said Kelly.

"What is your threshold of pain?" repeated the sugar daddy.

"Why? Is that important?" asked Kelly.

"Just curious," he responded.

At that point, Guerrero approached the sugar daddy and let him know who we really were.

"I'd like to talk to you about the arrangement you just made with Kelly," said Guerrero.

"I didn't make an arrangement," said the sugar daddy.

"Didn't you just offer her money for sex?" asked Guerrero.

"No," he said.

"You were talking about putting money, direct deposit, into her account. Isn't that offering money for sex?" asked Guerrero.
"No. Not at all. I told her very clearly that I wasn't going to offer her any money for sex and that I'm not offering that. I'm clearly looking for a friendship and companionship," said the sugar daddy.

Guerrero asked, "Why did you ask her about her threshold of pain?"

"Because it's something I'm interested in," he replied

Noel Biderman is the CEO of various sugar daddy websites, including He defends these relationships, saying these arrangements are legal and consensual.

Biderman said, "I do think we see a trend of more and more of these university and college age women joining."

"But Noel, you would agree that some people would think that women would be pretty desperate in order to trade sexual favors to have their college loans paid off?" asked Guerrero.

Biderman said, "I think that if someone is doing that, yes it does reek of desperation. I think these are people who are making a very conscious decision about what would make them happy in life."

"Everyone can set their own boundaries and everyone has the ability to decide if this is something they want to do," commented the sugar baby.