I was at a 4-year-and-offering-a-masters-in-ed level public college (before tech schools were renamed community colleges and colleges were renamed universities in the US -- so I can proudly state that college is now a "university") during '70-'72. This was when public tuition was about $7 a credit and my $1.50/hour summer job could handle a year's tuition and fees easily. That was in part because our society supported higher education with significant subsidies.
With major social investment comes individual responsibility. Spring of '71 the President of that college released a letter to be posted on bulletin boards campus wide that would be unimaginable today. He congratulated faculty on maintaining an overall freshman grade average of 2.1. PRAISED faculty for keeping A's to F's and B's to D's not far off statistical variance in a normal curve. I suspect part of the reason it was limited to freshman statistics was the use of so-called "weed out" courses. Within the rigueur of that normal distribution math majors, for example, better be able to handle their freshman year of calc -- with that shock awakening applied mutatis mutandis throughout academic areas. If they could not, time to look to a trade so the student didn't waste time and society didn't waste money.
I seem to remember it was Ronald Reagan explicitly stating that "higher education should be run like a business". You know, as part of the glorious long march to Neoliberal privatization that has made every other aspect of American life so wonderful. If higher education becomes a business, that makes students customers. Doesn't it? And isn't the customer always right? And aren't happy customers good business? So here we are. University football coaches are the highest paid public employees in many states, and we have happy customers with their A's.
And what of society?