G.I. Bill for veterans and draft deferments during Viet Nam played a role in the boom in the college business.
Parents wanting more for their children played a part.
My family has three businesses that we have worked in. Up until the 1960s it was railroading and teaching. Now its the HVAC business and teaching. My youngest daughter will be the 5th generation of school teachers in the family.
I worked summers, yes, summers, for the other family business from age 10 till 24. Learned a lot, developed a work ethic, and realized it wasn't for me.
Having said that, I do think "college" is a growth business run by people who have a very real understanding that societal pressure works in their favor. So they feel no pressure whatsoever to make any effort to keep the cost of college down, either in part due to greed or incompetence. Take your pick. Since loans are now the primary form of financial aide for most students, and the government underwrites them, there is no need to try to tame the monster.
Throw in the fact that local school districts are under constant budgetary pressure, guidance counselors feed the monster. Two of my family's line of teachers taught in vocational schools. One went over to the dark side and became an administrator. It was an eye opening experience for my mom. I will say this, the admissions process is MUCH easier and less complicated for a vocational school.
So, if you are in danger of losing your job as a high school guidance counselor, which would you encourage students to pursue? A process that can be complicated and has tons of paperwork involved (even if it is electronic now, it's still a confusing process) or one nearly all high school students could handle on their own if motivated?
As a parent who made the decision to pay 75% of my children's college educations (they had to have skin in the game) I resent the idiots who let costs escalate with no concern for the individuals who foot the bill. Our son went to community college. The oldest daughter is now a practicing civil engineer. The baby girl will be a teacher.
One final comment and I will get off my soap box. Politics plays a role in all of this. The college/university industrial complex has a huge amount of pull with state legislatures. Thus, the funding to subsidize state universities keeps coming (ever been to the President's suite at a home football game? Big donors and politicians). They also keep the pressure on the high schools to send everyone to college. That way they NEVER have to worry about a drop in enrollment. The money train never stops.
Education makes for a good political tool to get votes. Not many politicians will stand up and say, "Hey, it would be smart if we cut funding to colleges who offer so many worthless degrees at inflated prices. Let's pour that money into the community colleges and technical schools where our kids can get affordable educations and job skills that are transferable, lasting, and can't be outsourced."
Like that guy would get much support.
Even during the recent recession my family was hiring. Dirty secret, there is money budgeted for bail for non-violent crime so they can get key employees back on the job the next day. It's a one time favor, but it's hard to get guys with the skills needed to do heavy commercial HVAC. Thus, you get one second chance. If there is not enough residential and small commercial to keep everyone, the family takes the hit. It's too hard to replace the skilled labor. Better to go into the red for when times get better. Everyone gets their hours cut back - no overtime, etc, but you get my point.
Then there is the issue of social engineering with college students who are away from their parents for the first time. That's another rant for a different place.