IMO This is not targeted towards individuals applying on their own.

I went to a walkabout of a similar online education company's office and asked them about the high cost for an online degree. The answer I received was

1. there is demand for this and

2. Most of the demand comes from people in the military serving in remote locations or people working inside other large organizations which foot the cost. and

3. They provide online infrastructure to courses of schools like UC-B, UNC etc and the colleges set the price so as not to dilute their "brand" because the online degree does not mention the fact that the degree was obtained online (this could have changed).

All in all, my initial shock was a bit tempered after hearing the realities involving all 3 parties : the school, the student and the online enabler.