You obviously have no idea how research at a University works. The money from students, etc. goes to running the school. The vast majority of funds for "research" is acquired through grants and collaborations by faculty, many of which have value in the millions. The school provides the infrastructure, and graduate students. Undergrad students may work in the lab, but they do not really contribute to novel research.
Also blame the textbook costs on the publishers, not schools and requiring new books each year. What a racket.