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Good clarification, pdubs. It seems a university like St. John's might not be exempt, but its School of Theology might be.

If true, it's still strange to me that school with a non-free graduate degree in liturgical studies would be exempt, but an online school offering free courses in science, business, history, etc. would not be exempt.

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Liturgical studies by a religious organization are specifically protected under the the 1st Amendment[1][2]. Schooling has been a state domain for a very long time (look at Texas and California's influence on textbooks). The regulating of schools does not violate the US or MN constitution.

[1] http://en.wikipedia.org/wiki/Incorporation_(Bill_of_Rights)

[2] consumer protection law and religious organization http://en.wikipedia.org/wiki/Cantwell_v._Connecticut

I agree it's strange and I'm not sure how the letter of the law is being applied to Coursera, but it seems like this wouldn't even let a qualifying religious program give a B.A. or B.S. in Theology, more you'd be able to get a "certificate of congrats you can be a minister for our church". Also protects VBS and confirmation class type courses.

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