Earlier quoted context omitted.
This is a new thing (not the means testing but the idea behind it) AFAICT. It was just assumed that if your parents were above the "means" they would help out any way they could because that's what was expected of them as parents. College was also seen as an enabler and not an expectation for my generation. Or...if your parents spent all the college fund sending your sister to UCLA you could join the army and emerge…
Of course when college was a stretch but not median-income-barely-covers-tuition expensive, the assumption that parents would cover it were more reasonable. And it was less of an issue if they didn’t since the debt load wasn’t insane.
I don't think my parents could've afforded to send my sister to Stanford back then which is roughly the equivalent to your average state school today (completely guessing here). They probably would've found a way though.
My point still stands though, means testing was intended to get the best and brightest into college even if they're poor, couldn't even imagine Reagan/Bush entertaining the idea of giving middle-class kids a free ride -- in fact I can even picture Reagan on the TV saying "Uncle Sam ain't your baby daddy!"