So, college tuition costs keep going up. What are colleges doing with all that money?
Paying teaching staff? No. Tenured Full Time Professor pay has not gone up much, plus colleges are saving money by using more and more poorly (or not paid) TA's and adjunct instructors.
Replacing lost state/government moneys? Kinda. State investment in college has not decreased much, but it has not always kept up with inflation or rising admissions.
Sports? Depends on the university.
Building new stuff? Sometimes, although that's not the main place the colleges spend the extra money.
Best Answer: Mostly colleges are using the money to hire non-teaching administrative staff. Advisors. IT people. Marketing people. Financial planners. Communication specialists. Some argue they are necessary (a college needs a web page, after all), but overall they are not cheap.
(Goldie Blummenstyk. 2015. American Higher Education in Crisis?)