I don't know what colleges you're looking at, but you're misguided if you think colleges spend 100% of the tuition they receive. Schools like Harvard, Yale, Duke, etc. have multi-billion dollar endowments that just keep growing. Many colleges have so much money coming in and are forced to spend to keep their non-profit status that they build opulent dorm rooms, buildings they don't need, and have more Vice Provosts than banks have Vice Presidents. My own alma mater has TWO art museums on campus!