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Nowadays there is need to share the knowledge and collaboration with group of people with same interest because people and information which they want to access both is geographically distributed. Information technology plays a major role in the future of education, as they break geographical barriers and make educational content widely available. Knowledge collaboration is possible by creating virtual classrooms by interconnecting lecturers to geographically scattered students. Making educational material, such as tutorials and recorded lectures, available worldwide through high-storage infrastructures. Digitalizing and making books available through high-storage infrastructures. But this E-learning system requires huge investment for high-storage infrastructure. Some educational organizations and research institutes cannot afford expensive investments. On the other hand, in most of the organizations, there are large amounts of underutilized computing power and storage existing. Data Grid connects underutilized secondary storage of machines and provides huge secondary storage. It enables resource sharing among the geographically distributed users and resources. Therefore the institutes which do not have sufficient budget can make use of Data Grid efficiently. In this paper we have presented that how Grid computing can be used for inexpensive collaborative E-learning. Data replication increases availability, reliability of data and allows fast access to data. Replication reduces bandwidth consumption and congestion over communication line. Therefore replication is the major issue in Data Grid. Replication strategies determine when and where to create a replica of the data. A good replication strategy should ideally minimize file access time, reduce network congestion and minimize job execution time to improve performance of Data Grid. We strongly believe that the technological revolution that the grid is about to bring will definitely change the way that people deal with information and, ultimately, knowledge. In this sense, grid computing and e-learning form a perfect match.