[hirako2000]

Most of it goes to academic instruction expenses, and operations. The fast growing expense is more likely the latter as administrations have rather grown in size per student. Land appreciates in value too, even if the universities may own campuses, it remains in the balance sheets.

Research is also a cost, even though they some of it back, they aren't VCs so this can bleed money there as well, and pretty fast, especially for underperforming institutions.

I'm shocked shocked by the tuition fees in the U.S. But comparing with India and even Europe is a bit silly since those places don't compare in term of university ranking and average income level. Those professors/researchers are packed with long years of studies plus a loan they had accumulated themselves so it's a bit like a positive feedback loop.