Indebtedness Of Public Universities In China

Since 1999, the higher education of our country advances along the course of great-leap-forward development, scale of higher education obtains expansion by the unprecedented speed. The number of students enrolling to all the institutions of higher education increase sharply, so the scale of these colleges and universities expand quickly too. However, with a fixed state education funds investment, lots of higher education schools have to ask loans from banks to ease the shortage of money for development, and the amount of loan keeps increasing. Nowadays, running schools in debt has been a common phenomenon among the higher education schools in China.The loans of higher education schools have profound setting and reason. Meanwhile, it shows some essential feature. The setting contains two main sides. On the one hand, it has economic backgrounds. On the other hand, it has the possibilities and realities of the cooperation between the bank and the higher schools. The reasons cover six aspects: the insufficient of finance in higher schools, the lack of funds in expansion, the limited grow in tuition, the encouragement policies of government, the inaccurate estimation to risks of the banks and the inclined factors of higher schools. The features of the loans include four fields: the huge sum of loans, used to building constructions, the single form in guarantee and the single channel of return the loans.Naturally, the loans of higher education schools have penetrating influences: contributions and harms. Therefore, the governments, higher schools and banks should take effective measures to tackle the problems of the loans so as to eliminate the harms. The government should increase funds in higher education, control the scale of the loans, use the loans efficiency, supervise reasonable the afterwards loans and boost the earnings of donation. The higher schools should take scientific and rational attitudes, lengthen the deadline of the loans, intensify the management of the loan funds, raise funds from more channels and build precautionary mechanism against the risks of the loans. The banks should perfect the appraising systems to the higher schools, intensify the examination and management of the loans and take more force to change the incorrect loans.