[Morthoron]

There is a dearth of information regarding education in Lord of the Rings, along with virtually no information regarding minting of coins, commerce (there is more commerce referred to in the Hobbit than in all of LotR), taxation, military organization (outside the 'Captain' title), and any number of professions (scribes, for instance, are not mentioned, and mortal minstrels only two times I can recall).

In the Shire, one would assume that the mass of the population was illiterate, save for the middle and upper classes (for whom there was a thriving postal service). For instance, the Gaffer, based on his colloquial and malaprop ridden speech, was illiterate, and Samwise only learned to read based on the kindly intervention of Bilbo and Frodo. Interestingly, we know some female Hobbits could read (based on their correspondence with Bilbo). I would assume the dissemination of knowledge was strictly a family affair, passed on from parents to children.

In Rohan, I would again assume the majority of the populous was illiterate, mirroring, perhaps, early Anglo-Saxon settlements where history was passed along orally by scops and not written down.

In Gondor, education of any sort is seemingly on the decline. The very rich (like Boromir and Faramir) would of course have their personal tutors as part of their households; but based on Gandalf finding information regarding Isildur in Minas Tirith's archives that had long been forgotten by Gondor's scholars, it is obvious that there is only a reverence for the form of the past and not an actual study of history. This is also evidenced by Gondor's healers being quite ignorant (the babbling Ioreth for instance), which caused Aragorn much irritation.

Of the Dwarves, we know they wrote rambling contracts in legalese (Thorin for instance), and their avidity for commerce and their natural acquisitiveness made them a likely race for cultural literacy; for where there are accountants, there is the writing of lists, documents, inventories and such. Tolkien mentions on several occasions the Dwarves' fondness for the Cirth, as well as their secret language.