If a beneficiary decides not to go to college, VPEP offers a number of options to the account owner:

• VPEP contract benefits may always be transferred to a brother, sister or cousin the same age or younger who would have been eligible at the time the contract was purchased
  
• The account owner may want to retain the contract because a student has at least ten years after the projected high school graduation date to use the contract benefits
• The account owner may cancel one or more years of the contract

An account owner may cancel a contract at any time for any reason and receive a refund of payments made minus any benefits already used. If the account has been open for at least three years, the account owner will also receive interest (at the reasonable rate of return [opens in new window]) on the refund. Administrative fees may apply. Federal and state taxes and a 10% of earnings penalty may apply depending on the reason for the cancellation.