The court held that the current law does not prohibit tuition pledge. According to the Property Law of People's Republic of China (PRC), if the accounts receivable are pledged, the parties concerned shall conclude a written contract. When the credit reporting agency handles the pledge registration, the pledge right is established. Although private schools are private non-enterprise units aiming at public welfare, educational facilities may not be mortgaged. But private schools are self-supporting private non-enterprise legal persons. Different from institutions with purely public welfare purposes, they provide pledge guarantee for their loans with the right to collect tuition fees, which belongs to the category of accounts receivable stipulated in Article 223 of the Property Law of People's Republic of China (PRC), so the right to collect pledge is valid according to law.