I think it means that you can go to a state college, a private college (but NOT a for-profit college) and you qualify whether you are taking online classes or attending at an actual campus (brick and mortar). Your HR rep can clarify for you, but it sounds like an online course from a reputable college qualifies.
At most places, you can get tuition coverage for things that allow you to advance in that organization or do your current job better. So someone in accounts payable can get coverage for an advanced finance class, or a tax class, or managerial accounting, but NOT for a course in graphic design or social media marketing. At my current company, we cover ANYTHING which leads to a degree (accredited). So a lawyer who handles contracts can be getting a Master’s in Divinity, or a social media manager can be getting a law degree. But that’s relatively uncommon.
Ask. Knowing what will get paid for can only help you.