Adjusted for inflation, tuition now is $5,600. I paid about $2,500.

However, that means that you should be seeing lower enrollment rates which would make schools lower tuition in order to maximize revenue (basic economics).

That means that a combination of the perceived value of a college education or the availability of low cost loans to fund that education is driving that imbalance in supply/demand.

The reality is, the cost of tuition in 1985 was likely low compared to it's value, plus States contributed a larger proportion of State U budgets at that time. So some part of that difference is from that as well.

Bottom line though is, at a given point in time, a decision on the value you receive for the money you pay (including the debt you are taking on) is a decision a consumer makes. Consumers make bad decisions all the time, especially as it relates to debt (cars, cell phones, mortgages) and what all of these have in common is that the cost of debt is not well understood as most people make decisions based on monthly payments. The reason student loan debt is so bad is that even the monthly payment is not included in that decision so the borrower has absolutely no skin in the game at the time of the decision....a recipe for the mess they are in.