what do alteration spells do? I heard its 'fear', 'calm'
Fear, calm, frenzy are illusion.
Alteration has shield type spells (armor, frost, fire, shock), light spells, water breathing/walking and feather (increasing your carrying capacity). Though i have only seen light and shield so far i think. In oblivion alteration used to have open locks as well, but dont know if that is still around.