Research Of High Vocational School Debt Financing Risk Management

Since scale recruiting new students at the end of 90’s in twenty century, our country’s higher education developed quickly from public education to elite education.After large number of enrollment in the ten years, the quantity of colleges and universities students enrolled every year increased from one million and eighty thousands in 1998 to six millions and two hundreds ninety thousands in 2009.The total of Chinese students in colleges and universities exceeded America and increased from six millions and four hundreds thirty thousands to twenty nine million and seven hundreds ninety thousands, becoming No.1 and-working a miracle in the world.However, financial allocation from the government is acute shortage and few ways is avoilable for the colleges and universities to get enough to expand quickly, so most of them turned to bank for loan,which is the only way for them to select.Seriously some of them do not realize that they already can not bear it just for their low financial capacity.Once they can’t pay the loan and interest in time, they will face financial crisis unprecedented.How to assess and mitigate risks, to ensure a long-term, stabile and healthy development for high vocational education,it a import and pressing problem to the school, government and financial institution.Upon to the problems and risks mentioned above, this author puts forward a solution bases on his own long-term finance management experience in school, analyzing the status and essential matters, pointing out the risk factors from debt financing and potential bad influence,and how to prevent and solve the problems when they fall in long-term liabilities.The article establish a risk indicator system base on the loan quota control and risk assessment model and give a warn to the colleges and universities.This article also gives a further analysis about the current evaluation model from education department and finance department, discussing the defect and giving some advice, just for a risk prevention to the debt financing.At the same time, this the author discuss some detailed problems by cases, finally give a solution from three aspects involving high vocational schools, government and financial institution.The article makes a research about the management of debt financing risk happening in high vocational schools bases on current problems, it gives an innovation by combining the debt financing risk assessment system and new solutions which helps high vocational schools manage themselves for their loan control in bank, analyze and avoid risks in advance.