<p>To amplify post #4, just because colleges and universities may be non-profit does not mean that they are cost minimizers. College administrators love to spend more money (they say have more resources) on facilities, new programs and, yes, salaries. It’s not that these are necessarily bad or unproductive things, it is just that it all takes money. So to keep the lights on, build the reputation of the school, and preserve both the institution and the salaries and benefits of the institution’s employees, colleges have a great incentive to have as many applicants as possible. The only downside is that they have more applications to read, but they can always hire more admissions staff.</p>