A Study Of The Financing Modes Of Constructing Independent Colleges Affiliated To Higher Education Institutions

The higher education in China has been developed with a fast speed and people bring forth new ideas of running a school of higher education with various mechanisms and patterns,of which Independent College is one form.The most obvious characteristic of Independent College is that it is run by the local people, which means that the government offers no financial assistance,not to mention construction fund nor college expenditure.Construction fund is usually raised by the main body which runs a college by investing their own money or through different financing methods,while collecting tuition fee constitutes the main part to pay for the college expenditure and repay the investment.At present,the financing method of Independent College to raise its construction fund depends mainly on the loan from banks through the traditional financing mode.Obviously,this can not meet the need for Independent College is a long-term investing project.The present paper attempts to research a financing model and a detailed financing mode suitable for building Independent College.After the analysis of the property of higher education and investment and financing system,and the research on the current situation of Independent College and its investment and financing condition,this paper puts forward that project financing is.possible to be the financing mode of Independent College and a financing model of Independent College is established to analyze the specific financing mode fit for Independent College.A case study is involved to further demonstrate the feasibility and possibility of financing to apply project financing to Independent College.This paper establishes a financing model of Independent College,proves the feasibility to adopt project financing and puts forward a specific model fit to project financing of Independent College.This research plays a positive role in the investment and financing reformation of higher education,especially in the financing methods of Independent College and it is suggested that the model discussed in this paper can be applied to the financing of Independent College.