It was probably more like 70 years ago that higher education was mostly for those from wealthy families and maybe a few other who were top end academic achievers. Then the GI Bill came, followed by the great expansion of the state universities. In the 1970s and 1980s, there was plenty of space in low cost state universities for lots of students. But costs have been rising, and increasing population has made admission more competitive at many state universities.
These days, a recent high school graduate does need money, or at least parents willing to continue to support him/her at home, in addition to student loans, to afford college (in the absence of scholarships and financial aid grants).