They have endowments.

The colleges/universities that aren't managed by complete idiots use those endowments to hedge exactly this sort of risk.

There were a lot of articles over the past few years about various teeny tiny colleges investing their entire endowment in funds and yelling from the rooftops that they out-performed Harvard's endowment.

The bill is going to come due. Over the next two years, a lot of small colleges that were investing for annual returns instead of for ensuring institutional survival are going to collapse under the quadruple whammy of refunds, lawsuits, decreased enrollment, and decimated endowment.