The Dilemma And Outlet Of Colleges And Universities With Heavy Debts

In recent years, Because of the continuous enrollment expansion, the scale of school has expanded rapidly and various inputs have increased sharply. The contradiction between the deficiency of educational funds and the great demand of capital resulted from the development of colleges and universities is becoming more and more aggregative. In order to alleviate this contradiction, colleges and universities start to get loans from banks to an increasingly significant extent. It has become a common phenomenon to run colleges and universities with debts. The in-time and moderate contracting of loans helps resolve the bottleneck of capital utilized for the development of colleges and universities, providing financial support for their further development and even producing good effects. Contracting too large an amount of debts will affect the future expenditure in teaching and scientific research, sustaining expenditure, as well as the normal development or even the sustainable development of colleges and universities. The National Auditing Deputy revealed the existing problems in colleges and universities that at present some colleges and universities, by contracting large amounts of loan, are undertaking infrastructure construction considerably, which leads to extremely heavy debt burden. Some experts claim that, if supervised by strict financial system, most of colleges and universities have reached the brink of bankruptcy. How colleges and universities with heavy debt to repay has got people's attention.First, this article describes the present condition of colleges and universities with heavy debt by specific examples and data, and analyses the reasons for colleges and universities burdening heavy debt. Then it analyses these colleges and universities'crisis according to the theory of business crisis, and makes sure of the existence of universities'crisis, the crisis in reality, and describes the serious results brought by the crisis. This article sums up several ways to deal with the debt crisis, such as increasing government's allocation, increasing students'tuition, selling the land of old campus, releasing education bond and so on. Then it analyses the feasibility and unfeasibility on the basis of reality. At last, the article reviews the university's attribute, and then provides two ideal ways to address the crisis: bankruptcy or transformation.