Why was college cheaper when fewer people attended?

I've heard that college used to be a lot cheaper when most people didn't attend one. Can anyone expand on why that is?

When fewer people attended college, there were a several factors that contributed to it being cheaper.

1. Public funding: One of the most significant reasons is the way public universities were funded. Prior to the 1980s, a large portion of public university funding came from state appropriations, essentially taxpayers' money. This public funding subsidized the cost of attendance for students. However, over the past few decades, many states have decreased their funding for higher education. This shift has translated into higher tuition costs for students as universities had to look for other sources of revenue to fund their operations.

2. Minimal administrative costs: Today's universities often have more administrative positions which didn't exist in the past. Increased administrative costs have contributed to the rise in tuition.

3. Increased demand: When fewer people attended college, demand was lower. As more people see a college degree as a necessity, demand has increased, allowing colleges to raise prices. Today, a degree is often seen as a minimum requirement for many jobs, thus increasing the demand for higher education.

4. Increased services: Colleges today offer more services than they used to. These can range from wellness programs, to lavish student centers, to extensive study abroad programs. All these services cost money to maintain, and that cost is passed onto students through tuition and fees.

In summary, decreased public funding, increased administrative costs, higher demand, and an increase in services colleges provided have all contributed to the rise in college costs as more people seek a higher education.