Based on New Institutional Economics and Economics of Education, theory on educational property rights and its mechanism is discussed in this thesis. With the foundation of the existence of educational property rights, the theory of transaction cost and the method of analysis on property rights being used as the pointed theory, theory on educational property rights is established. The thesis analyses the vicissitude of the structure of property rights and administration about the school from 1949, points out the abuse of the system of the educational property rights currently in effect and put forward the aim and the principle of reform.As we know, there is great difference between educational activity and economic activity, while educational property rights is existed objectively because the scarcity of educational resource which represented gross scarcity, financial scarcity, organizational scarcity and transaction cost of education are existed. Education is a course of signing contract between the organizations and the simple person, its essence is the transaction of property rights, and the cost is called transaction cost of education. Restricted by bounded rationality, information incompleteness, information asymmetrical distribution, opportunism behavior tendency, transaction contract can't be complete which lead to the existence of the transaction cost of education.Educational property rights is a bound of rights including ownership, possession, usufruct, revenue and disposition for educational fortune. The ownership of educational fortune is the most elementary rights which determines but can not include the others. Educational property rights possesses exclusive and transactional, resolvable and entirety, behavioral and approbatory attribute, as well as multivariate and heterogeneous attribute. Collocating educational resource, reducing nondeterminacy, impelling and restricting as well as minimizing externality are the main function.Based on transparent property rights, the arrangement minimizing the transaction cost of education to the inferior limit is efficient. Corresponding arrangement of property rights should be adopted for different educational service; educational service of pure public goods should be adopted state-educational property rights, mutual educational property rights for quasi public goods, and private property rights for private goods.The state can reduce the transaction cost of defining and transferring educational property rights through radicating and implementing educational property rights with the price under the marketable price. At the same time, the lower efficient arrangement results in that the state carries through the system of educational property rights for its own benefit, discriminates against certain type of educational property rights, intervenes in and controls educational activity which directly leads to fragmentary educational property rights.Educational organizations can be thought as an net of contract to exchange property rights, it is of corporative property rights materially. Educational property rights of organizations is theprescriptive property rights including the rights of ownership, possession, usufruct, revenue and disposition for the given educational fortune. Ownership of educational organizations including residual claim and residual rights of control is a kind of residual property rights resulted in incomplete educational contract, it is a kind of state-contingent ownership. The different features between the human capital and the non-human capital lead to the owners of non-human capital own more residual claim and residual rights of control than the owners of the human capital in the prime arrangement, and the owners of solid non-human capital own more residual claim and residual rights of control than the owners of immaterial non-human capital, and the more value, the more residual claim and residual rights of control. While proprietors get more residual claim and residual rights of control than the producers, the patriarchs and the st