University Debts And Risk Management

Since 1999, Chinese higher education has experienced a rapid expansion which made a great-leap-forward development in the history of China's higher education. In the process of scale expansion, the shortage of funds constrained the development of higher education. Therefore, many colleges and universities have to depend on commercial bank loan which is a new financing channels besides financial appropriation and tuition to solve the problem of insufficient funding. However, in the process, college and universities carry a heavy debt burden, Jin Li university even on the brink of running out of cash. Since then, it became a hot issue that universities should know how to develop on bank loans and avoid debt crisis.From the historic perspective, this paper review the history of college and university debts, according to the detailed statistics and examples to describe the current problems. Then analyzes the cause of university debts from different angles. Further, to summarize the characteristics of university debts and the opportunity and challenge brought by. At present, heavy debt burden is like battlefield, many provinces to probe how to pay off the debts. In conclusion, explore the solution of university debts crisis and puts forward corresponding policy.