Heavy government involvement in student loans created a perverse incentive to bloat costs (administration) and increase tuitions.

Classic bureaucratization, really... when the buyer and the seller of something (e.g. a university degree) are disconnected by way of, say, a flood of cheap student loans, the incentive structure for the bureaucracy is to increase its own budget, staff, and therefore power.

It's no wonder that administration has exploded along with tuitions.

Lack of tenured positions really has very little to do with it.