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If you stick with the job, you have no assurance that you'll ever get the full-time position you want. They sure are being coy about filling the vacancy. Why not, when they can use eager part-timers and not pay benefits? These days, even half-decent employers are playing that game.
So if you stick with your employer, you might lose; you might never get what you want. But if you go to school, you _will_ get that MFA (if you don't screw up). And the MFA will pay off down the line and (in the interim) support you while you get it.
Here's what I would do: make the commitment to go to grad school, then tell your boss what you're doing and why. He might:
1) Get pissed off and tell you to clean out your desk.
2) Give you a pat on the back and best wishes.
3) Sit down and figure out a way to keep you on part-time.
If 1), you were probably never gonna get that job. Or it wouldn't have been especially secure. But no half-decent boss is going to get pissed at you for going back for more education.
Frankly, with an MFA and a teaching certificate, you will get a job. It may not be the job of your dreams right off the bat -- it might be one or two classes (non-tenured) at two or three different community colleges or high schools, to start. But you will have work.
I tell you this: if you don't go for the MFA now, you probably never will. I don't know you, but that's just the way these things usually work out. Life gets more complicated as time goes on. Extra demands are made on you. College remains forever "in a couple of years."
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