"Have you seen the tuition , room and board for private colleges?"
This hits it right on the head. I teach at Hofstra, which is private, and am aware of the financial hardship faced by many of our students, the majority of whom attend with some form of aid (mostly loans). While RU and PSU are among the most expensive state universities in the country - possibly THE most expensive - they are still relative bargains compared to the private schools.
Also, isn't Rutgers required by NJ law to maintain a certain % of NJ students in its enrollment? That renders it quite difficult to get into RU from out of state. Frankly, I wouldn't mind seeing that relaxed somewhat, unless NJ starts to pony up a lot more than it currently does and begins funding its public universities, especially RU, at a higher level.