| Hi Larry!
VPP does not currently support in-app purchases.
This is basically a personal ownership thing... one technique I've seen folks use is to buy iTunes gift cards for the users and give those out.
I've also seen folks have luck with contacting the app developer and saying something like "I'm from an education institution, could you publish a version of your app with the in-app purchases built in?" - app developer often respond positively to this.
-Mike Michael Scott, Systems Engineer Apple Education Apple Inc. (720) 346-3871
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