Chinese Colleges Deep in Debt
Chinese colleges are nearly $30 billion in debt according to a report from National Development and Reform Commission(NDRC).
Some colleges are beginning to feel the pinch in daily operations.
The reason for the debt – increased enrollments! Go, figure.
Colleges were encouraged to borrow from banks to construct new c
ampuses and offer loans to poor students.
Construction loans could drive the debt to as high as $60 billion and students are not paying back their loans before graduation as was planned.
Does this scenario sound familiar to anyone?
Chinese experts think Beijing could learn from foreign universities. (uh, I don't think so.)
The experts want the students to borrow money directly from banks. Then the students can be deep in debt instead of the colleges.
Some colleges in China, however, Peking University and Tsinghua University in Beijing; Shanghai Jiao Tong University; Fudan University; Tongji University and East China Normal University in Shanghai; Nanjing University and Southeast University in Nanjing; and Zhejiang University in Hangzhou were in good standing.
The most problematic schools – those that depend on the government for funding.
Indeed…this does sound all too familiar.
Why do schools/colleges have so much trouble balancing their budgets?
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