Burden of school debt

The government should not assume the mammoth debt burden of universities, nor should schools be authorized to charge children of wealthier families higher tuition to gain admittance.

During the past several years university heads have appealed to the government to pay off their bank loans. Some have suggested that universities should be allowed to charge children of wealthier families higher tuition if they fail the national entrance examination but still wish to be admitted to their schools. Some of the additional tuition can be used to sponsor students from poorer families.

Neither of the two suggestions is workable.

If the government pays off all the debts of the universities, who can guarantee that they will not borrow more? Similarly, there is no guarantee that the additional tuition will be used for students from poorer families.

In the past decade, institutes of higher learning have expanded with little regard to practical reality. With insufficient government funding, they turned to bank loans, even though they knew that they would be unable to pay back the money. Operating under the illusion that higher education is for the public good, they believe the government should assume the loans.

The schools must improve their financial management. In fact, many schools already charge students who fail the entrance examination higher tuition, but call it a donation. This money has not been put to good use due to poor supervision and management. Some even went into individual pockets.

As to those schools that are heavily in debt, the Ministry of Education should limit their enrolment, cut their staff and use the savings to pay off their debts.

Guangzhou Daily

(China Daily 03/16/2009 page2)