Education is a bureaucracy item required to build Classrooms and School Desks. It is also necessary for several programs: the Foundation Education Program, Guard Taser Certification program, General Education Qualification program, Education Reform Program grant.
Education will allow prisoners to increase their "Reform" score, which lowers their re-offending chance.
To unlock Education, the Warden must be placed and given his own Office. Then, Education may be researched from the Bureaucracy menu, at a cost of $1000.