Universities have no incentive to lower prices for a couple reasons:
1) Government Intervention. Government loans mean that anyone with any type of credit can get loans to cover most of their tuition. Therefore it is "affordable" to pay ridiculous amounts of money for education.
2) Society has pushed the myth that one MUST be college educated no matter where they are headed in life to have any real career. This is patently false, especially in the trade industry.
3) Higher priced education is considered "better" by society, by and large.
4) People buying the crap that you need to be "well rounded" in your college education, which is an excuse for Universities to make students take all kinds of worthless courses (thus paying more) for their degree.
To fix the problem, government needs to start weening out their involvement, so that Universities have to charge less or face a lack of business. Students need to start considering whether they really need 4-5 years of education to go into tribal drumming music. Alternate trade schools need to pop up which give people only the education they need for their career choice. Finally, and this is already happening to a large extent, businesses need to stop putting so much stock in big name universities, and university degrees in general. There would also be pressure for educators to put together shorter, better degree tracts if the loan rates one could get were directly tied to ones likelihood of getting a paying career (and thus being able to pay back the loan in a reasonable time)...you know, the way loans work in most other parts of the market.