If you want to be mind-boggled by an egregious example of higher education waste, excess and cynical money-grubbing, it sounds as if NYU might qualify. Naked Capitalism reports:
Under Chairman of the Board Martin Lipton and President John Sexton, New York University has been to operate as a real estate development/management business with a predatory higher-education side venture. A group of 400 faculty members at NYU, Faculty Against the Sexton Plan (FASP), have been working for years against what Pam Martens has called “running NYU as a tyrannical slush fund for privileged interests.” FASP just published a devastating document, The Art of the Gouge, which describes how NYU engages in a mind-numbing range of tricks and traps to extract as much in fees as possible from students, while at the same time failing to invest in and often degrading the educational “product”.
There's more at the link, including links to all three sections of the report that was the source for this article. Infuriating reading . . . but eye-opening.