College debt path generation and resolve.doc

College debt path generation and resolve Abstract: how to measure and to avoid the risk of higher education debt, is the educational administration department and university financial managers have to face problems. This paper analyzes the causes of expansion of the college debt, and proposed to resolve the basic measure for university debt risk. Keywords:: college debt; risk; resolve In recent years, the rapid development of China’s higher education, making higher education enrollment quickly move from the ‘elite’ education towards a ‘mass’ education. However, that is followed by a serious shortage of educational resources, due to China’s GDP, the proportion of expenditure on education is low, and increased funding for higher education far not keep up with the scale of growth, and thus using the liability method for scale expansion on the line for many colleges and universities The effective approach. However, there are indications that such large-scale borrowing schools, and the rapid expansion of the model caused the college of financial risk. How to measure and to avoid the financial risk on the institutions of higher learning become the educational administration department and university financial managers have to face problems. First, the causes of the risk of college debt 1. Lack of financial input, forcing colleges and universities borrowing in order to survive Higher education is a kind of public welfare undertakings, the Government as part of its most important investors bear the cost has not shirk responsibility. But the fact is that China in the last century not only failed to achieve the 4% ratio in state education budget in this century, the proportion of GDP, is also all the way down. In 2006 fell to 2.16%, financial education expenditure to GDP, from 4% of the target farther and farther. On the one hand political education expenditure-GDP ratio has been declining, on the other financial education funding will not be substantial increase