Yeah, looking at it again I may have misread, I think the article was actually saying that it's a low-risk perk for the teams because the kid may never actually finish college (or take the grad school year), let alone at their current institution. But if they do, that's a lot of value. And I would think the 'living expenses" part still leaves the door pretty wide open. Some well-off college kids live in apartments that their parents buy for them - could a player just buy himself a condo? If you go to Harvard can you take a much bigger COL allowance than if you go to LIberty?
It would also be unusual - if not impossible - to just continue on to grad school at Harvard or Lafayette so if a player like that did want to pursue an actual graduate degree, could definitely stretch that one year's tuition out a public university.