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:
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.
"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.