A Study On Debt Risk Prevention Of Public Universities In China

With the rapid expansion of enrollment scale, the ordinary higher education transferred from "elite education" to "mass education". In the process of transformation, The leap-forward development of colleges and universities produced huge demand for construction funds. But the government funding is limited, a major expansion of the construction of colleges and universities encounters the bottleneck of government education investment inevitably, the huge funding gap can’t fill by tuition fees completely. As soon as possible to make the expansion of colleges and universities, improve school conditions, improve the comprehensive strength of colleges and universities, the use of bank credit funds is an important financing channels undoubtedly. Colleges and universities use loans to alleviate shortage of construction funds, speed up development of career, at the same time, the problem of blind expansion and high standard construction appeared in the construction, Due to the size of the loan beyond their bear ability greatly. The paid and risk of a huge loan funds become a serious problem restricting the development of colleges and universities. If let the problem spread, it is bound to bury very serious hidden trouble on the healthy development of China’s higher education in the future. Strengthen the research of college debt risks, explore effective measures to control and resolve the debt risk actively, ensure the financial security, promote the sustained and healthy development of higher education in China is a very serious and urgent task for us.In this paper, through literature research, case analysis and the combination of qualitative and quantitative methods, we found the problem, analysis the causes of the formation of problem, and put forward the corresponding solution. Firstly, we analysis the relevant theory of public finance, risk management and cost sharing, put forward the theoretical basis to prevent debt risk in colleges and universities. In reference on the basis of previous studies, this paper expounds the present situation and the formation reasons of the universities debts, and analysis the formation reasons of the debt risk in public colleges and universities further. Secondly, established evaluation system of the debt risk in colleges and universities, selected and explained evaluation index of the debt risk in colleges and universities, to evaluate college debt risks. We use bank loans of colleges and universities control and risk assessment model to measure A college’s bank loans and evaluate its debt risk, so as to explore reasonable way to control the debt risk in colleges and universities. Finally, explore the specific measures to prevent debt risk in public colleges and universities from the government, colleges and universities, and bank three aspects, we hope to solve the problem of debt risk in colleges and universities, prompting the harmonious development of higher education in our country.