Yes, I'm distance too, but PhD students in my country don't pay fees, so at least I don't have that to worry about. The worst thing about working from home is the isolation, it can be absolutely crushing. This forum helps, as does http://www.phinished.org. The other really bad thing is that not being on campus means that I have missed out on opportunities - my peers get offered work, as they're around, networking etc etc and their careers are taking off, whereas mine isn't...So, try and network too, if you can.