The terrace will now be known as the `Study United stand`.
A club statement said: "The joint project between the council and the club aims to use the theme of football to provide an exciting and innovative way for children to raise standards in literact and numeracy.
"The centre opened in September 2003 and has already had 1,000 learners through its door."
As part of the deal the scheme to provide free tickets to local schools will continue.
Leader of the council, Cllr Don Stewart, said: "This sponsorship is good for the club, the council and local schools.
"Instead of a traditional sponsorship package we have aimed to make sure that as many young people in North Lincolnshire benefit from the council and the club working together."
The club have also confirmed that Grove Wharf, the company owned by Iron chairman Steve Wharton, will sponsor the East Stand - most recently known as the Country Chef Stand.
The deal will run for three seasons.