No, a lot of schools are just trying to stay afloat. Those school who are financially stable are taking significant losses.

Big 12 commissioner and staff are taking a 10% pay cut.
University of Louisville coaches are now taking a 10% pay cut.
Iowa State University Athletics Department staff and coaches are also taking a pay cut.
Old Dominion University just dismantled its wrestling program.
University of Bridgeport Athletics Department is laying off many of its staff.
The Stanford University President and Provost are both taking 20% pay cuts.

Colleges are primarily about education and NOT about sports, so that is why Wisconsin decided to cut out the athletes. It's a shame, but just like HS, they don't have an obligation to give
any athlete 4 years of sports.

You are right:
The music performer can go to grad school
The study abroad kid will still be able to do so in the future

And the women's college lacrosse player can still play lacrosse after college... If she is good enough, she can play still lacrosse for the WPLL.