Part of the reason the market can tolerate an increase in price is the same as the reason health care does likewise. The consumer is paying with someone elses money in many or most cases, and no one is looking closely at an itemized recipt/menu.

There are some new universities that aries and grow, especially technical colleges, things like U of Phoenix, etc., but it almost by definition they will be low status (signaling) and there are acrediting hurdles and other regulation that helps exiting universities function as a cartel.