You are right that college used to be much less expensive.  My tuition as an "out of state" student to the UW was $98 per qtr. for tuition.  That did not include books, dorm, etc., but the overall total was not high.

However, the reason tuition has gotten so high is actually because of gov't guaranteed student loans.  When universities realized they would have all these students to pick from (instead of students picking the university), they decided to expand and grow and give raises to their staff and faculties, etc., etc.  And, it's been that way ever since!  And, the gov't would always be there to guarantee that no private bank or univeristy would be on the hook for unpaid tuition.  Many students then decided to just extend their H.S. by going with their friends to a university and many had no idea what they were there for.