This is an excellent idea. With on line classes, there is no reason why a basic liberal arts degree need to cost the equivalent of a home mortgage. We do students no favors by getting them sometimes hundreds of thousand of dollars in debt to get a college education (especially in the Obama job market desert). For most students, they would be far better off financially by not getting saddled with massive undergraduate school debt.
And this also puts pressure on universities to start lowering tuition over all, which has been growing much faster than inflation.
I knew Instapundit would be on this issue soon enough...