"Unless something has changed, you need to take a least one in-class course per semester to establish the housing area for BAH purposes.
A lot of Universities with high military/ex-military populations use a blended course with 1/2 the sessions being in class and half online just to establish that billing zip code requirement."
jahlon is correct.
I attend classes here at Camp Lejeune using the Post 911 GI bill. The college (Campbell University) here on base allows you to receive full BAH as long as one class is seated and the other can be online or "blended". Blended means that you only attend class one day a week for that class and the other class has to be seated to receive full BAH. Campbell does two 8 week terms per semester, but the BAH still stays the same. The only thing I hate about the whole BAH issue is that it's pro-rated based on days per month in the classroom. There are months that I would draw more BAH by taking a online class. For example, last December, we only had school for 3 days and the term was over. So I got a whopping 3 days BAH.
If anyone knows another way to make this work, I would be interested. I have wanted to sit down and do the math based on the school year at Campbell and see if I would draw more by just taking all my classes online. Semper Fi.