That makes sense.
Based on my prior research on the issue, if I were to rate the reasons for tuition/cost increases for college students over the last several decades:
1) State/Federal Funding - This has fallen off a cliff. In the 1960's, state/federal dollars pretty much covered 100% of the costs. The trend to replacing state/federal dollars with tuition dollars began to accelerate in the late 1980s early 1990s. This trend continues. (i.e. shift the cost from taxpayers to individuals utilizing the service). Wyoming is unique because we have a Constitutional provision providing:
"The university shall be equally open to students of both sexes, irrespective of race or color; and, in order that the instruction furnished may be as nearly free as possible, any amount in addition to the income from its grants of lands and other sources above mentioned, necessary to its support and maintenance in a condition of full efficiency shall be raised by taxation or otherwise, under provisions of the legislature."
I don't believe we are following the plain language of this provision.
2) Increase in Services - As you point out, in the 1960s college was basically a classroom and a library. The biggest increase in cost of the increase in services actually appears to come from RESEARCH costs. A massive amount of dollars flow to research now.
3) Regulatory Costs - We have absolutely overregulated colleges, etc...shifting a bunch of money to regulatory compliance and causing a need to hire so many more people for positions that weren't necessary in the past (Title IX compliance, Research compliance, Financial aid administration, Cybersecurity, Data reporting, Accreditation requirements, , Clery Act and campus safety obligations, etc...). This really needs to be addressed IMO. It is absurd how much of the pie goes to regulatory compliance now.