New Undergraduate College-Shandong M College Debt Risk Management Research

In the process of Chinese popularization of higher education,the shortage of education funds is inevitable.Compared with western countries,the source of our education funds is lack of diversity,almost all of colleges and universities have to be in debt in order to run normally.It's prominent that new-built undergraduate colleges always have huge debts,the main format of which is bank loan.By 2015,the number of Chinese new-built colleges(including independent institutes)is 678,which is more than half of nationwide normal undergraduate colleges.Compared to national key universities and old undergraduate colleges,ample education funds are more needed by new-built undergraduate colleges.Because of abundant reasons of higher education's current mechanism,in order to cope with funds of running colleges,these colleges have to choose loan transaction,the largest proportion of which is bank loan.As a result,new-built colleges have to take heavy debts.Shandong M college,s debts was 300 million in 2013.In this article,the reason of its debts and its current conditions of managing debts are investigated.By researching and illustrating Shandong M college,analyzing 4 external causes and 2 internal causes,3 governmental strategies and 3 M's strategies to control the debt risk are discussed.We will explore how new-built undergraduate colleges promote managing debts and possible measures to dissolve debts quickly and manage debts efficiently,for guiding new-built undergraduate colleges to moderately get into debt,avoid and dissolve risks of debts and prevent or avoid potential financial deterioration to some extent,so that they will be capable to develop in a sustainable way.