If the amount VPEP would pay to a school under the applicable benefit formula is less than the amount the account owner paid for the contract plus the reasonable rate of return [opens in new window], the account owner may roll the principal plus interest (compounded annually) into a VEST account. The account owner can then request a distribution from the new VEST account to be applied not only toward tuition and fees but also toward other qualified higher education expenses, such as room and board.