It's a really complicated situation that's still being played out in courts but recent rulings have (finally) started to peel the flimsy (and complete bullshit imo) reasoning that because someone is a student-athlete they can't earn money.
I know the CVAL region winners got some sort of prize money but I don't know if the money went to the schools and then gets distributed to the players or if it just goes all to the schools.
However I also know (since I at one point played in collegiate) that since schools outside of esports-specific recruiting have to just play with the talent that's in their student body aren't able to necessarily experiment with roster changes like a VCT team freely can so that means the team has its limits on what they're able to achieve, if that makes sense.