Your school wants you to install a certificate associated to a private key they control in order to do MITM interception i.e. so that they might be able to:
- they might be able to inspect all your TLS communications while you are using their network;
- (possibly) they might be able to filter/block some communications.
This technique is deployed in many organizations in order to:
- detect malwares in the network, block attacks;
- block abuse of the network (eg. leisure, watching series, illegal content, etc.);
- block NSFW content.