[quote=Asuras]
What kind of time period is the academy set in?Is magic practiced outside of the academy?How integrated is magic into the background of the world, like politics, religion, and history?Are there factions of mages?Is any kind of magic forbidden?
[/quote]

Ahm... Modern day.

No.

Not at all. As far as the people outside are concerned, it doesn't exist. Think Men In Black with a Harry Potter twist.

No factions that I know of. o-o'
Though, some can be made if you wish for there to be.

Well, yes. The school's not going to allow most dark magics or magics that can instantly kill. But for the most part they're pretty lax.