Please help - one year gap

Hello,

I was laid off last year and I have stayed at home almost 1 year. I was disappointed of my career so I applied for a MBA program after I was laid off. I was admitted but in July, the silly MBA school told me that they cannot accept the funding provided by government. I for sure won't fund that program by myself. So I start to look for job again. But I have one year gap on my resume:
1. What can I do about this one year gap on my resume?
2. If I was asked for this one year gap, should I tell the true story (MBA) or go for a somewhat "popular" answer such as I want to spend more time with family?

Thank you in advance for your advice.

MM