Research On Loan Risk Management Of Provincial College

In 1999, the government promulgated a new policy about expansion of higher education. Then every college began their expansion of enrollment, especially the provincial colleges. They hope they can developed themselves a lot by this chance. They increased the enrollment and new buildings. However, the government didn't increase their input. The lack of education funds became a common problem which almost ecvery college faced. To solve this question, colleges turned to banks for help and began a lager-scale Sliver School cooperation . Now, it is become a common phenomenon that colleges operate themselves in debts.It is no doubt that the debt is a double-edged sword. On one hand, it solves the necessary funding problems. On the other hand, it changed colleges'capital struncture and made colleges carry heavy debt burden. If the debt is too heavy, colleges will face a loan risk when they are unable to pay off their due loans. We can find that college loan developed not in a good state. Many colleges faced a higher pressure of payment and some are in trouble now.On basis of the analysis of literature, this paper aimes at provincial colleges and introduces the states of colleges'loan, and summarizes the main characters and questions of colleges loan. At the same time, the paper analysed the risk which appeared in the course of loan and found the reason. At last, the author supply some suggestions which can play a role in ease and control the loan risk.