The rate of college attendance and graduation increased dramatically with the introduction of state universities and financial aid programs - it was no longer just the province of the wealthy. This obviously had good effects on the economy, and on society.

When my daughter was attending a private university, she had an enlightening conversation with a professor who worked on pricing for her university. He told her their prices were not going up in response to increased costs, but rather to maintain a certain price relative to in-state tuition. Of course, in-state tuition has been steadily increasing because it is becoming less subsidized.

In other words, the cost increases are a response to cutting government funding, both for private and public.