The $200,000 college diploma

Soltan sees the posh atmosphere on her campus and others like it as a byproduct of the broadening gap between the wealthy and the rest of the nation. "You've now got this class of hyper-rich people in this country whose kids are attracted to chic urban schools like NYU and GWU, which are full of well-dressed sophisticates just like them," she said.

As colleges become more like luxury items, students and their families are paying for them the way they would a pricey house or car. Student loans taken through private lenders now make up 20% of educational borrowing, according to the College Board. Ten years ago, the figure was 4%. Private loans are not guaranteed by the government as are federal student loans, and they frequently carry higher interest rates, especially for borrowers with poor credit ratings.

It seems colleges and universities will continue to hike tuition and fees as long as society is willing to pay, and ordinary students will have a harder time paying their way. A 2004 Century Foundation report showed that only 3% of students at the nation's 146 most selective schools come from the nation's lowest socioeconomic quarter; 74% come from the richest quarter.

Perhaps, at some point, universities full of great economists, ethicists and business school efficiency experts will figure out how to lower their prices. But so far, our finest institutions, including several with multibillion-dollar endowments, say they don't know the answer.