Brick and mortar universities offer attractive networking opportunities for students that are not as easily utilized online. Of course, it might be argued by a dedicated University of Phoenix student that the experience of working while attending classes is just as valuable as being a member of a university lacrosse team, university newspaper, or debate team. Furthermore, the maturity and responsibility of juggling work and school can be beneficial, and is something that more traditional university students must sacrifice. University of Phoenix students can still discuss their course matter online with students and faculty, and may be better able to see the relevance of learning in the real world, since they are a part of that world as workers. Furthermore, students can spend more time with their families while attending school.

Merit-based aid to attend a university clearly seems to be an example of an 'efficient' market -- the best student is given the most attractive opportunity to make use of the degree. It could be argued that in general, it is an opportunity cost for society, and not 'equitable' that students who are not wealthy are not able...

At some schools, the terms of need-based aid also often demands that a student work a part-time work study job and wealthier students do not have to do so.
It is not equitable that the children of the wealthy can choose a college based solely on personal preference, and not have to work if they do not wish to while obtaining an undergraduate degree. There is some equity in the distribution of need-based aid, of course, but it is a rare poor or middle-class student who can ignore the price tag on his or her college tuition. Furthermore, a poor student who receives a full scholarship must be more careful in selecting a marketable degree, rather than following his or her heart than a wealthier student.

References

Henderson, David. (2009). Opportunity cost. The Concise Encyclopedia of Economics.

Retrieved October 31, 2009 at http://www.econlib.org/library/Enc/OpportunityCost.html

The cost of your online degree. (2009). Votech. Retrieved October 31, 2009 at http://www.votechdirect.com/the-cost-of-your-online-degree.html