At the more desirable schools, tuition fees don't pay for tuition costs either. There's a correlation between how much the college (and its donors) give to a student and the quality of the college, for reasons that are obvious upon reflection: it aligns incentives. If the school is paying for your attendance, their motive is for you to succeed at something (or else why would they bother schooling you)? If the school is profiting from your enrollment, their motivation is for you to enroll, not suceed.