$17M as an endowment is pretty low. YOU might think the school should give out more in aid to the student in the story, but the school made no promise to do that an accepts the students to the school based on the application, not the need for FA.
Hey, if a school wants to give FA to every student, great. If a school wants to give all students a free education like Berea or Alice Lloyd, great. Even Berea keeps some kids out because they aren’t needy enough! But you as an applicant can’t tell the school how to spend its money. If the business decision is to build a new gym to attract even more full pay students, that’s up to the school. Many of the things the schools have to spend money on are required by the federal government to continue to receive federal funds - Title IX administrators, mental health services, employee benefits, counselors, etc.
This kid didn’t have to go to an OOS art school. Sometimes the major is just not offered at an affordable school and you just have to change your major.