It is a widely-established general trend for both public and private colleges and universities - details may differ -, to which this university is no exception:

"Published tuition and fees at public four-year colleges and universities rose at an average annual rate of 4.9% per year beyond general inflation from 1999-2000 to 2009-10, more rapidly than in either of the previous two decades" http://www.trends-collegeboard.com/college_pricing/highlight... http://www.50states.com/college/detail/pa/215947.htm

Edit: There is obviously no direct causal connection between tuition increases and this specific iPad giveaway. It's still being paid for indirectly by students' money, obviously.