what is difference between literacy and education?

June 19, 2009 12:32am CST
i've heard people saying that this person is literate or this person is educated and so on.looking by their use of these two words it is clear that both the words definitely mean different.but what is the difference between them?for me both mean the same because these two words are manily used to praise someone and it surely means that the person who is educated or literate has knowledge of many things.now i need your help to explain to me the difference between these two words.i'll be thankful to you all.