Summary: Minority-targeted scholarships--scholarships for which some form of minority status is an eligibility criterion--have become controversial in recent years. Scholarships restricted to students of a specific race or ethnicity have raised concerns over perceived reverse discrimination. GAO found that although many schools awarded minority-targeted scholarships, these scholarships accounted for a small proportion of scholarships and scholarship dollars in academic year 1991-92. Most schools awarding minority-targeted scholarships used race or ethnicity as an eligibility criterion; few used gender, religion, or other minority status. Race or ethnicity, however, was rarely the sole criterion. Most minority-targeted scholarships used additional criteria, such as financial need or academic merit, for awarding funds. Furthermore, students receiving race- or ethnicity-based minority-targeted scholarships made up a small percentage of all racial or ethnic minority students. Schools funded minority-targeted scholarships primarily through (1) private endowments and (2) income from tuition and other fees. Four of the six schools GAO visited used minority-targeted scholarships to a great extent and found them valuable in recruiting and retaining minority students.
