The Risk Analysis and Precaution Measures for Running Universities in Debt

With the expansion of universities and the increasing of students,the old facilities of universities can not meet the needs of the development of universities.Therefore universities fall into large debt to build the new schoolhouses and basic facilities to attract more students.These debts have been used to improve the conditions of universities and meet students' needs.However,the principal and following interest may result in large financial risks because the ability to pay back these debts is very limited for universities.So the policies providing a loan should be standardized.To decrease the risks,we should strengthen the evaluation and the control to the debts of universities and use credit more effectively.