As I recall, in Arizona they reduced the subsidization of the state universities, and tuitions went up (A LOT). More than doubled, IIRC, in one year. That doesn't address any increases in private schools like Stanford, but it could be more about state budgets than federal budgets.

Colleges are faced with a couple of cost drivers: faculty career paths and the arms race of student amenities.

Back in the 90's when college was still kind of affordable (depending on where you went) dorms were still dorms and the "gym" was a pile of rusty iron plates in a smelly basement. Cafeteria food was exactly that and it was a treat to have a pizza oven in ONE of the dorms.

Faculty topped out at full professor with tenure, and that was that.

At some point schools began competing with each other on student amenities, so now there are juice bars, vastly improved campus recreational centers, multiple pools and custom dining options. Faculty needed career paths so there were a raft of Special Assistant Vice Provost for X or Associate Dean of Y to keep them around. Tuitions went up in response.

So it wasn't just easy federal loans, but part of it. An influx of full-freight paying foreign students also didn't help: out of state tuition skyrocketed in many schools just because it could.