Beyond the woods lies Wizard Hat Mountain.
Its high peak is rarely without snow, and a perpetual circle of fog appears to form a brim. The question of why the fog never seems to leave has left many scholars and naturalists baffled.
Some of the villagers say the fog is actually a disguised dragon or storm spirit that has made permanent residence.
On dark nights, you can see the light from the windows all the way in the village. At least, that's what some of the villagers say. Others say that the lights are all in people's imaginations.
Some who visited the mountain say they found a large red door leading into it. Some say they found only stone.
Some who visited the mountain never returned...
Wizard Hat Mountain is in fact filled with wizards. If one were to enter its giant red door, one would find oneself in a bustling lobby where berobed wizards converse and research at round tables (each table has a golden flower-shaped lamp in the center to give light). The rich red carpet is in surprisingly good condition for the amount of traffic the room gets.
One would also see a mahogany desk with a blue-robed skeleton sitting at it. The skeleton has a pair of polished blue agate orbs for eyes, and if you approach it will lean forward and ask, "new student?" If you say yes, it will ask you your name and birthdate. If you give it, it will put it down in a record book and assign you a dorm.
Nobody knows who the skeleton is (or belonged to). It's always been here...
You'll find that the average wizard dorm room contains 3-5 wizards. Next you will find that education is somewhat chaotic. There aren't official teachers here so much as wizards who elect to hold lectures and classes in whatever rooms they've claimed as their own. One teacher who specializes in ecological topics is a sentient fungal being whom you are told grew out of the wall one day.
You will find that learning also involves running a lot of errands for other wizards who need this or that for their magical experiments. Bring me the primrose flower, and I will teach you how to cast lightning. Return my books to the libraries and I will teach you a cleaning spell. That sort of thing.
(There are many library rooms in Wizard Hat Mountain.)
You will learn that Wizard Hat Mountain's interior wasn't constructed, but rather that it grew. In fact, it is still growing. Sometimes a new door will appear leading into a new room or even an entire hallway. Not all of them are as... fit for habitation as the rooms you're now accustomed to. Some will be filled with strange creatures and curious ecosystems. Older wizards will offer rewards to the younger ones who brave these new spaces to find out what's in them.
Deep beneath the mountain is an underground lake, and they say that a monstrous beast lives in the lake. No one has gone down there in many years, however, and it might just be an old legend. (But knowing Wizard Hat Mountain, it's probably not.)
The forests outside of the mountain are full of adventure as well. They are filled with magical plants, creatures, and fungi, and many interesting (if often dangerous) people can be found there. The people often have their own secrets and help to give... if you'll do them favors.
There is no official graduation from Wizard Hat Mountain. Wizards will eventually decide they've learned enough and head out into the world to take on important positions such as court magicians, monster wranglers, curse breakers, healers, or general all-around nuisances.
One can return to Wizard Hat Mountain at any time, and many often do. Wizards often desire the company of other wizards - not necessarily because they like each other, but because they crave the kind of enrichment that only being around a hundred or so other conniving magical divas can bring.
Plus, it's fun to send new students off on quests to see if they survive or not.