So without the added cost of a building, online school has a possible chance of not running at a (major?) deficit like regular schools do.
If they lower tuition proportionate to “the cost” of the building, it doesn’t help the school at all.
Not sure why you're dragging me into the building cost argument.
I'm with
@aygart on this, payroll is the major expense (and the most important one) of a school.
That's beside for the fact that the only real asset a school has is its teachers (and other human capital). One can have a school without a building, without utilities, without meals, etc. But without educational staff there is nothing, which is why payroll should always be the first priority of any school.