Russ Poulin came to eLCC to talk about new requirements from Washington that will require schools to obtain state approval from every state in which they operate. Russ has gathered together quite a lot of information and posted it on the WCET blog here: http://wcetblog.wordpress.com/2011/01/26/629/.
Because schools don't know where their students are from until they enroll in the college and because the approval processes take time schools are effectively given two options. They can either obtain approval in all 50 states or they can stop offering classes to students from specific states. States with small populations will likely see the options of their citizens decrease because the small number of potential students will make it less viable for schools to obtain and maintain approval. States with challenging of expensive approval processes (such as Massachusetts) will also probably see decreases in the number of colleges and universities offering courses to their citizens.
I'm having trouble seeing any advantages for students (after all these are all accredited programs already) or schools, but am seeing lots of disadvantages.