An Ivy League education is an expensive luxury product for the parents. That way they can brag to their peers about their children. It’s well known that the main benefit of an Ivy education is networking. That’s because of the connections that the parents have, not because the education is better.
With the exception of maybe Princeton or Columbia, top research isn’t coming out of Ivy League schools. And the good research they do have is because they pay the top people more. They don’t have smarter students, they just have more resources.
MIT isn’t an Ivy. Cal Tech isn’t an Ivy. Stanford isn’t. UC Berkeley and University of Michigan definitely aren’t.
Did you forget the first and biggest one?
All those athletic scholarships are paid for by the sports teams. It’s free money for the university. And the football team funds all the other sports, so a lot of football money goes to the university as tuition for an out-of-state soccer player or something.
Plus who do you think the sports teams pay rent and facilities fees to? The university who owns their facilities. The teams are non-profit so football has little incentive to save money.