IMO universities these days are mainly in the real estate business. The maintenance on a building with multiple 1k person lecture halls isn't cheap. Faculty are underpaid. And yet it's more and more expensive.
What I'm saying is there is no obvious reason why a university costs more to run today than 1990,but tuition has gone up far more than inflation.
However the ability change more doesn't force it. Administration could presumably keep prices down instead of - here I have no idea what they are spending it on.
This lack of knowledge means that I cannot comment more. My opinion on using the money to pay more teachers thus reducing class size is very different from my opinion on private jets to some exotic vacation. (I don't think either of the above are the case but I could be wrong)