Are you suggesting that the athlete is free to use the school's copyrighted name and logo in order to profit from selling his merchandise?
Colleges have rights, too.
NFL players do not use their team logos without permission.
Of course colleges have rights and naturally there would be restrictions, but I would think it would be better for the college ( in behalf of all of its sports - major and minor) to negotiate those rights instead of start paying athletes.
Guess it comes down to a cost analysis basis for the college.