Vermont Higher Education Investment Plan

Account Owners are not subject to any additional charge to pay for the operating expenses of the Mutual Funds held in the Plan’s Mutual Fund Options (“Underlying Fund Expenses”). The amount of Underlying Fund Expenses attributable to each Mutual Fund invested in such Mutual Fund Options (generally 0.08% - 0.60% of average daily net assets) is included within the Plan Manager Fee of 0.80% of the average daily net assets, so that the payment of the Underlying Fund Expenses reduces the amount of the Plan Manager Fee payable to the Plan Manager. The Underlying Fund Expenses include payment to the Plan Manager’s affiliate(s) for investment advisory, administrative and other expenses. The range of the Underlying Fund Expenses is based upon information contained in the February 1, 2006 prospectus of the TIAA-CREF Institutional Mutual Funds.

There is currently no other fee, charge or penalty imposed in connection with opening or maintaining an Interest Income Option Account. There are also no transfer or withdrawal fees. VSAC reserves the right to impose such penalties, charges or fees in the future.

Account Owners are not subject to any additional charge to pay for the operating expenses of the Mutual Funds held in the Plan’s Mutual Fund Options (“Underlying Fund Expenses”). The amount of Underlying Fund Expenses attributable to each Mutual Fund invested in such Mutual Fund Options (generally 0.08% - 0.60% of average daily net assets) is included within the Plan Manager Fee of 0.80% of the average daily net assets, so that the payment of the Underlying Fund Expenses reduces the amount of the Plan Manager Fee payable to the Plan Manager. The Underlying Fund Expenses include payment to the Plan Manager’s affiliate(s) for investment advisory, administrative and other expenses. The range of the Underlying Fund Expenses is based upon information contained in the February 1, 2007 prospectus of the TIAA-CREF Institutional Mutual Funds.