Research On The Solution To Debt Risk Of The Universities In Hebei Province

Since 1999, colleges and universities have enlarged their enrollment rapidly, The higher education in China comes into mass stage from the elite stage. Universities are also rapidly expanding and the their input increased significantly, however the expenditure on education has not been simultaneously increase, in order to alleviate its shortage, some universities run into debt. The total amount of loans of the colleges and universities has been 250 billion yuan, and the number in Hebei Province has reached 9 billion, and Hebei is in higher indebted without doubt. In addition, there are a lot of hidden liabilities in colleges and universities, such as engineering arrears and faculty fund-raising and so on. From 2006, most universities entered the peak period of repayment, but due to limited sources of funding, they can just maintain a normal school expenses, and it is impossible to repay the principal amount of massive, they have fallen into financial difficulties, facing a funding strand breaks dangerous.From 2008, most universities in Hebei Province have entered a peak period of repayment. With the weak foundation and the insufficient investment, the budget expenditure in the universities in Hebei Province on education per student runs down on the list for several years, and it's far below the national average, which exacerbated the shortage of state funding. And these affect the normal teaching work, practical lessons which should be carried on outside change into learning with CD, the experimental samples are lack, so quality of higher education is poor, and universities faced with unprecedented debt crisis. Therefore, how to control and defuse the risk of liability for universities, to maintain university's financial security, to ensure sustained and healthy development of higher education in Hebei Province, has become an urgent task.The purpose of this research is"reveals the problem, control and resolve college debt risk", research idea is from the basic theory to reality, then analyze the reasons, and propose solutions finally. First, the paper introduces the research on the status of university debt risk, the relevant theory and related concepts. Secondly, with analysis of the situation of the universities debt risk in the Hebei Province, the paper analyze the causes of debt risk from multi-angle. The universities of Hebei Province have been more indebted and lower income, inability to repay debt on time, the normal teaching and research activities of some universities have been affected, facing greater liability risk. This situation is mainly due to the rapid enlarge of the higher education, but the investment did not increase with the same proportion, so the universities only can access to finance through debt, coupled with policy support, the generosity of banks, colleges and universities own management problems, leading to large-scale loans to universities. Then, based on the success case of universities at home and abroad, some countermeasures to control and defuse the short-term debt risk of Universities in Hebei Province to resolve the debt risk are proposed, such as Increase the proportion of Financial education funds to GDP, government to increase the amount of the interest subsidy, change the commercial loans to policy loans, restructuring of syndicated, and Land replacement, and the feasibility of the various programs is also analyzed. Finally, by analyzing the status of the diversified funding of universities in Hebei Province, in order to resolve the long-term debt risk and sustainable development of the Universities in Hebei Province, the direction of the diversified funding is proposed. In addition, some feasibility suggestions are also proposed, such as to improve asset utilization efficiency, improve the teaching quality to enhance competitiveness, change the public universities to stock universities or private universities and etc.