China's Public College Loan Risk Control And Defuse The Study

Since 1999, higher education in China embarked on a road of great-leap-forward development, greatly accelerated the transition from elite education to massive education. In 2002, Chinese higher education gross enrollment rate rose to 15%,China's higher education went into internationally accepted higher education popularization phase. In 2005,total attendance at institutions of higher education reached 23 million, the scale of higher education led the world, and in 2009, the higher education gross enrollment rate rose to 24.2%.But behind the achievement of higher education scale expansion, there was massive loans. After the higher education scale expanding, universities only can borrow from commercial bank to relieve the shortage of fund, because the government insufficient investment and they lack of other sources of funds. Due to the need of the development, universities broke the guiding principle that the university as a social welfare institutions can't operate on borrowings. But the loan is different from the government funding, which is compensable capital and needs to pay principal and interest. The loan amount of many universities is more than the financial capacity which they can bear, so the loan crisis occurred, which seriously affected the normal development of the universities.Starting from the current situation of university loans, the paper analyzes the particularity and the rationality of the loan, then through analyzing the causes of university loan risk and some representative university loan risk evaluation models, taking the predicament of loan risk control into consideration, constructs multi-subject loan risk control system composed of university, bank, government, and public power from the perspective of stakeholder, then analyzes the existing scheme of reducing the loan risk,and introduces the situation of American university loan, in order to provide reference for university loan study in China.According to the study, the author concluded the following conclusions:The evaluation index of the main existing loan risk evaluation model is too focused on financial factors; The standardization of the financial information in university is not very high, and the transparency is very low; The subject consciousness of university loan risk control is not strong; The subject responsibility of university loan risk control is unclear; There was some unfair phenomena in resolving the university loan risk problem. Aiming at the problems of controlling and solving the loan risk, the author put forward the following suggestions:The government should improve education expenditure budget to increase university's income; The university loan should be classified and clear responsibility according to its usage; The institutions of higher education take measures to enhance the university's ability of raising funds to improve their capability to repay the loan; According to the actual situation of university, some universities whose loan risk are very serious can adjust structure of property rights; We should pay close attention to the function of public opinions in the university loan risk control; The government can carry out the loan reduction and exemption policy for some universities which are unable to repay loan; And to establish a university loan project management agency on the national level is imperative.