College Loan The strategy of resolving the crisis

[Abstract] college loan crisis has become common concern. In this paper, Universities in Western, for example, from government, Education, administration, university and other levels of analysis and discussion of a Strategy to defuse the crisis measures college loans.

[Keywords:] colleges and universities; mortgage crisis; resolve; Strategy

Bank loans are an important means of financing college. The use of bank loans, moderate debt operations for the rapid development of the universities is of great positive significance. But with the dramatic increase in college loans, college loans banks have evolved from the historical choice of a reasonable a "problem", in particular, Jilin University, March 2007 "on the convening of collecting proposals to resolve the financial difficulties the school notice of the forum" open on the network since the credit crisis to become a university community, government, media, the focus of common concern. literature and government departments there is a degree, thus, Zhejiang, Jiangsu, Guangdong and other models that are applicable for the economically developed provinces, for the western universities, in particular the "economic poor provinces, Education province", it may not be entirely applicable . In my opinion, should be established by the government, Education administrative departments, colleges and universities to participate in multi-party, the central government, local government and university loans university shared resolve mechanism.


First, the government level

Government in the development of Higher Education not only played the roles of colleges and universities to provide funding, but also to adjust that will guide action by the macro-control, and thus risk the Government to defuse and resolve College College Loan Funds should play a leading role in the process of . specifically from the following aspects:
(A) make full use of fiscal measures to increase Investment in Higher Education
1. Increase the central government on the transfer of local government Investment in Education, to achieve the equilibrium of Education Investment
As the education level of Investment by the impact of local economic development, economic development of faster eastern and central regions of the intensity of Investment in education was significantly higher than in Western economically underdeveloped areas. The Shaanxi Higher example, the 2007 budget for college student Funds and student within the budget public funds equal to the national average respectively 59.83% and 49.73%. the reasons for this phenomenon is not only the importance of Higher Education for the local government level, but also by the level of economic development, university the number and size of universities and other factors. for slow economic development, university students in a larger number and larger in Shaanxi that "education province" is concerned, despite the student budget and the provincial education spending for both budget the growth rate of public funds is higher than the national average, but the overall ranking as its largest province of education is very clear contrast. solely rely on the local government to enhance Investment in education, the short term, education can not be achieved province province to change goals of education. So , I believe that this Strategy in the implementation of the process of education, for Shaanxi, Sichuan lags behind economic development, education, large-scale "economic poor provinces, education province", the central government should give full play to the central government's macro-control capacity, consider the Local education expenditure share of local fiscal expenditure, the per capita financial resources and local training costs per student, according to local standards of Higher Education expenditures and Higher Education all over the financial objective Chengshou funding for higher education funding gap balance of transfer payments, reducing funding for higher education regional differences, and gradually so that the "education province" to "education province."
2. Local government reform, Investment in higher education funding mechanism to increase the intensity of higher education into the tilt
In the central government to increase Investment in education on the transfer of local governments, while local governments should also increase Investment in education, on the one hand, it is necessary to pass legislation to implement the Education Investment-GDP ratio of the standard, and constantly improve the college student budget Educational spending for public funds and student budget, and strive to reach the national average. On the other hand the funding to improve existing colleges and universities implemented the "Comprehensive Fixed + special subsidies," the resource-constrained allocation, the establishment of specialized agencies, in compliance " Efficiency and fairness "based on the principles, through the establishment of the budget allocation model for university, college financial comprehensive performance evaluation and monitoring mechanism for university financial crisis, the establishment of a" college-demand schools, middle schools by the government, "the demand constraints funding system, and gradually establish and implement education funding system, funding the government institutions of higher learning, scientific Research contract funding and student grants system to gradually transition to the Fund, the formation of the University of competition.

(B) to optimize the development of institutions of higher learning environment and establish a sound system of university financial support, and improve investment in education policies and regulations
1. Optimize the financing environment for college
Based on large-scale investment in higher education, the characteristics of long period, the Government should actively develop financial policy to replace the current commercial development of higher education financial support to alleviate pressure and higher debt repayment, and for the further development of the future provide sustainable financing system. Thus, the author envisages the reunification of the existing college loans taken over by the policy banks, both after the takeover of college loans preferential or zero interest rates can also be implemented losses are stopped, reduction of principal and interest and other methods , to be central or local government budget expenditure on education (especially for capital construction funds) continue to increase, the gradual return of loan principal and interest.

2. Perfection of financing policies and regulations
Improve as soon as possible to encourage private capital to enter the field of higher education policy and educational grants tax relief, credit guarantees and other laws and regulations, so that college loans, educational grants and other activities according to the law and sustainable development. In particular, to use tax measures to encourage enterprises, individuals or social groups to donate or invest in higher education, the establishment of educational grants duty-free system and higher education tax refund system, and thus encourage private capital to enter higher education, the diversification of the higher education funding. Meanwhile, also in college Admission to implement some special policies to resolve difficulties and current college financing college loans.

3. The higher education system of innovation and seek diversified development
With the stage of higher education from elite education to mass education stage, the Government should continue to be innovative on the higher education system, seeking diversified development, brought a new stage to address the shortage of education funding. The one hand, should be strongly supported school social organizations and individual citizens to improve the overall strength of private colleges and the quality of education, to break the existing public universities overwhelmingly dominant pattern, the greater extent to meet China's multi-level, diversified demand for higher education, while achieving higher diversification of funding sources, in this context can learn from the United States, Japan, Korea and other countries experience; the other hand, can learn from the experience of state-owned enterprise reform, considered part of the joint-stock reform of public colleges and universities to increase their own financing capacity and energy, optimizing the structure of their assets, minimize financial risks.


Second, the administrative department of education level

Administrative department of education as a representative of the Government, with the development of higher education management and supervision of the implementation of macro-rights and responsibilities. For this reason, educational administrative departments of universities in addressing the financing of college loans and at least the following aspects of work:
(A) develop a scientific and rational planning of higher education in order to provide the basis for government financial investment
In general, the higher scale with the level of economic development and social improvement of living standards and is continually expanding. From the higher education level and per capita gross national product management point of view, Chinese and foreign experts after a lot of calculation and comparison of obtained relation coefficient was 1:0.68. from an international point of view, higher education development and economic development level, on the one hand, determines the level of economic development, government, society and parents of students in higher education investment and support capabilities; the other hand, level of economic development is affecting social factors attract college graduates. in the development of higher education development planning process, it is necessary to take into account the changing needs of public higher education should also take account of local socio-economic scale and level of development, the development scientific and rational development planning higher education, drawing on Expansion of Higher Education over the past levels of economic development, various problems arising from the lessons of higher education to health and sustainable development.

(B) Establishment of the operation of the monitoring mechanism of financial resources
1. To establish an accrual-based cost accounting system of colleges and universities in order to objectively and reasonably determine the cost of college training, to overcome the inadequacy of existing cost accounting .2. To establish a sound college financial information disclosure system for colleges and universities stakeholders have access to transparent financial information and reduce the cost of external financing college to .3. Perfecting financial crisis monitoring system for early detection of university financial risks in the operation of the Ministry of Education .2004 developed jointly with the Ministry of Finance < <Higher bank line of credit control and risk assessment control model>> financial crisis for universities to establish an effective monitoring system template .4. To establish and improve the comprehensive performance evaluation of college finance in order to scientifically assess the operating performance of University. now文献 more comprehensive performance evaluation system of university establishment of a comprehensive discussion of the feasibility of a certain .5. the periodic audit of financial capital, in the current national audit institutions are not strong enough case, the introduction of social intermediary organizations ( CPA Audit, etc.) to conduct financial audits in order to improve the operational efficiency of university funds, to eliminate financial waste and the illegal phenomenon.

Links to Research Papers Download http://www.hi138.com (C) establish a sense of service, to provide good services to University Financing
Education administration departments in the possession of unique advantages of information, education administrative department by virtue of its unique position, as transfers of funds between different universities, silver school cooperation, collaboration and school, to provide financing services, financial intermediation for the Strengthening and resolve Gaojiao Bank loans have a very important role in the crisis.


Third, higher levels of

For colleges and universities, in order to fully understand its bank loans is only one way to raise funds, but only a supplementary financing. Borrowing from the development of a fundamental solution to the problems that exist, the key is to cut expenditure based on the whole process of strengthening financial management.

(A) establish the financial risk awareness and improve fund use efficiency
Colleges rely on national long-term financial provision of the loan funds paid sufficient understanding of the concept of lack of funds and financial risk awareness of the cost of .1. Universities in the use of debt capital, it must establish a sense of risk and assume responsibility for credit risk, which is the basis of risk prevention .2. must be fully aware of the high interest payments on existing loans have a negative effect of educational resources should be rationally determine the loan size, loan term, to strengthen cooperation with the Bank of .3. colleges and universities to develop practical, scientific and reasonable development Strategy, correctly handle the relationship between immediate interests and long-term interests, to promote austerity, persist within our capabilities, to ensure the healthy development of abandoned blindly follow the trend of awareness, use of the loan, to achieve university development, to prevent the pursuit of luxury, blindly ahead of consumer behavior.

(B) the whole process of implementation of loan management
First of all, before the loan to determine the appropriate size of loans, loan size against risk. Universities key to appropriate use of credit funds, and "appropriate" should be established on the basis of a reasonable size of loans. This is to control the universities borrow the key to the size and risk prevention . should be tailored, moderate loan. not blindly loans, loans can not exceed its capacity, must ensure that staff costs, teaching investment and Research into the functioning of normal teaching order. Second, to strengthen the loan project management, improve capital efficiency loans. Universities paid the loan of a strong, debt must be repaid, otherwise it is to pay a high cost or loss. relating to the investment projects of the loan should first in-depth market Research and feasibility studies, to ensure the project's legitimacy, norms sex; ensure earmarked to strengthen the monitoring of loan funds to invest, not loan funds will be used for foreign investment (including investment on the school-run industries), Technology development, donations, payments and balance the budget items Forfeiture offset daily expenses were inadequate, strictly forbidden to use loan funds to increase or improve the treatment of persons in disguise. universities to strengthen the management of loan funds, should form a "strict examination and approval, special purpose, closed operation, track monitoring, assessment and efficiency" of the loan funds to use the mechanisms.

(C) cut costs, improve efficiency of fund management
1. Duofang broaden the financing channels to actively carry out the work income. Taken to increase the income of colleges and universities to solve their own financial crisis, tension and the key to bank loans, colleges and universities should establish a market-oriented concepts based on the constant expansion of a variety of funding sources improve their own fund-raising capacity. (1) play a college social and scientific Research in the service advantages of resources to expand sales and service income college, active industry cooperation, through the organization of adult education, for enterprises and commercial organizations to provide advice and other form of social services, colleges and universities in achieving the three major functions, but also to increase university income; (2) the establishment of the University fund system, full attention to the construction of Alumni and social contribution in the development of the role of universities in meeting some alumni and other donors target return, while self-development for the college to seek more financial support; (3) actively seek investment in government and special funds, including various types of horizontal-vertical Research projects for funding at all levels, increase research funding sources for all levels Discipline and Specialty construction funds, additional funding .2 disciplinary construction. To establish the cost of management awareness, training costs reasonable control. understanding of the nature of college loans, establish a correct sense of responsibility and establish a standard system of financial responsibility, from loan approval, the use of to the repayment of loans, must be strict, as planned, to "be prudent lending decisions, loan investment to be viable, the loan program to regulate, the loan must be strictly audited." In addition, attention should be paid the costs, benefits management, optimization, integration good schools all the resources to fully enhance the efficiency of resource use, increasing education funding units input-output ratio, the formation of thrift running the schools, do what the concept of building a conservation-based university, to prevent the excessive pursuit of high standards, large-scale, high-grade caused by blind investment and duplicated construction, to prevent the construction of flashy "face projects"; should arrange the budget, short-term interests and properly handle the relationship long-term development, the rational allocation of school resources, and actively explore the educational benefits.


[Main references]
[1] Chen, Wei. Chongqing City College Loan Analysis [J]. Chongqing Institute of Technology, 2005 (1).

[2] Liu Mi, Yi, and. Formation of College and resolve the debt crisis of [J]. Financial Theory and Practice, 2008 (4).

[3] Zhuxian Bo, Li Bao. More ways to solve the problem of college debt [J]. ACCOUNTING, 2008 (4).

[4] Zu Guohua. On the part of the provincial universities and thinking Investigation debt risk [J]. Modern Education Science, 2008 (5).

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