Storing paper and electronic records was expensive.
Paper records were stored in mobile shelving like this:

https://en.wikipedia.org/wiki/Mobile_shelving
Electronic records were ephemeral.
Term papers and tests were all on paper and returned to the student after they were graded. When you talked "off the record" to a college dean, department chair, or campus police " it was really off the record.
Throughout my college years I used only two addresses: my parents' and my university post office box. I had no phone. My university ID didn't have a magnetic stripe or RFID chip. A photograph of my face wasn't stored in any electronic databases.
It took me nine years to graduate from college, I was an affable lunatic who took a lot of time-outs, some of them less voluntary than others. In today's world how much of that would be documented in electronic records, possibly available to random hackers on the internet?
I graduated from college without any student loans. During the time-outs from college I worked. It was possible for an affable lunatic to find temporary work, and that explained the time-outs to potential employers -- obviously I was paying for college which wasn't quite true but nobody had to know.
This "everything on the internet" approach to education, or to society in general, is not a good thing. Our privacy shouldn't depend on the security of massive electronic databases that record our lives in ever-increasing detail. Such databases simply shouldn't exist. We've traded away our privacy and endangered our liberty for convenience and a false sense of security.