Editing a Picture

Well firstly what software have you got to do the editing?
If none perhaps download Gimp!

First, some comments on the image. The flash reflection in the background from what looks like a whiteboard is distracting and the shadows look harsh. If you can shoot it again, try it without a flash or put something like a tissue over the flash to diffuse it a bit.

If you want to fade the image and add text to the edges, you need to move the text and that element in the top left corner into the image more. They would be faded along with the photo.

If this is about what you want, this is how I did it in PhotoShop.

Increase the canvas size (image/canvas size). I added 2 US inches to each dimension. Make a new layer and put it under the image. It can be a color if you want. Use the Marquee Tool with a feather setting over 50 to select the picture and inverse the selection (Selection/Inverse). Hit the delete key and the edge will fade out.