The Aga Khan Foundation provides a limited number of scholarships each year for postgraduate studies to outstanding students from select developing countries who have no other means of financing their studies, in order to develop effective scholars and leaders and to prepare them for employment, primarily within the AKDN. Scholarships are awarded on a 50% grant : 50% loan basis through a competitive application process once a year in June or July.

The Foundation gives priority to requests for Master's level courses but is willing to consider applications for PhD programmes, only in the case of outstanding students who are highly recommended for doctoral studies by their professors and who need a PhD for the fulfilment of their career objectives (academic or research oriented).