Management of data in education sector particularly management of data for big universities with several employees, departments and students is a very challenging task. There are also problems such as lack of proper funds and manpower for management of such data in universities. Education sector can easily and effectively take advantage of cloud computing skills for management of data. It can enhance the learning experience as a whole and can add entirely new dimensions to the way in which education is imbibed. Several benefits of Cloud computing such as monetary benefits, environmental benefits and remote data access for management of data such as university database can be used in education sector. Therefore, in this paper we have proposed an effective framework for managing university data using a cloud based environment. We have also proposed cloud data management simulator: a new simulation framework which demonstrates the applicability of cloud in the current education sector. The framework consists of a cloud developed for processing a universities database which consists of staff and students. It has the following features (i) support for modeling cloud computing infrastructure, which includes data centers containing university database; (ii) a user friendly interface; (iii) flexibility to switch between the different types of users; and (iv) virtualized access to cloud data.