I think it depends on the type of degree, Bachelor's or Masters, and also what your field of study.
A bachelor's degree largely says to employers that you can read, write, and follow direction. There is very little problem solving with a BS/BA, and most employers will then train you on what you need to know. As such, I think online degree programs for bachelor's are very viable.
A masters depends on what you are studying, some just lend themselves to online (such as IT fields), than others (some business degrees, sciences). At this level, employers are looking for problem solving skills, team leadership, critical thinking, etc. I doubt many employers would be impressed with someone applying to lead a team, when they did everything online.
I have an MBA, and besides my field of study (Economics) it largely taught me to work and lead teams. It was very real world e.g. teams are assigned at random and everyone had to pull their weight. Often you received grades based on the total teams effort, and some had some portion of the grade given to you by peers. No way online (even with online meetings, skype, etc.) would match that.
Best of luck with your papers!