Education is a process of socialization. According to Froebel the object of education is the realization of a faithful, pure, violable and holy life. Mahatma Gandhi has defined education says, “By education I mean drawing out the best in child and man, body, mind and soul. Schools in rural areas and small towns face difficult challenges in serving the needs of children and public education. Rural schools serve over 40 percent of our nation’s students, but receive only 22 percent of federal education funding. Rural schools face unique educator recruitment and retention challenges also. Education is much important for the rural people for the following reasons: Backwardness of the village life and Agriculture. Lack of education is very much responsible for this agricultural backwardness. The farmers must be educated to modernize agricultural field and use scientific and technological methods to improve agriculture. The problems of rural areas like poor sanitation, diseases, child labours, dowry system, over population, female infanticide, child marriage, backward communities’ ignorance and illiteracy should be eradicated and villages must be reconstructed by making the village people educated. Village life is guided and controlled by various superstitions and they take loans on account of evil social customs and traditions. They spend lot of money on marriage and other social customs and rituals. Education is the only solution to help the villagers to overcome these problems. The present system of education in rural areas is more futile. It is impractical and expensive. It does not   teach the students, the ways through which they can earn their livelihood. The teachers are highly suffering under poor salary, inconvenience and so on. The examination system also is defective. Education should be made compulsory. The teachers should be given incentives and training. Craft central education should be introduced for rural people. Adult literacy should be increased in rural areas. Women’s education must be increased immediately. Mahatma Gandhi’s basic education must be introduced. Vernacular languages must be used. Domestic science education should be taught to girls. Without entertaining community discriminations backward communities also must be taught education. Social education is the most suitable one to the rural areas. The village people must be made to realize the importance of education and they must be prepared to obtain literacy and become self reliance.