According to Title III of the
Higher Education Act of 1965, in order for an HSI to receive federal funding it must satisfy the following criteria: • Have a least 25 percent Hispanic or Latino undergraduate full-time equivalent student enrollment. • Must be an eligible public or private non-profit institution of higher education • Must offer at least two-year academic programs that lead to a
degree • Must be
accredited by an agency or association recognized by the
Department of Education • Must have high enrollment of students in need The Department of Education offers grants to institutions defined as HSIs which can be used for many academic purposes serving all ethnicities at the institution including faculty development, funds and administrative management, development and improvement of academic programs, endowment funds, curriculum development, scientific or laboratory equipment for teaching, renovation of instructional facilities, joint use of facilities, academic tutoring, counseling programs and student support services. Any HSI can benefit from the assistance to increase the amount of Hispanic or Latino students in higher education, and the amount of Hispanic or Latino students graduating from a higher education institution. To be considered an HSI, universities have to meet certain criteria: 2-and 4-year colleges and universities had to have at least a 25% Hispanic or Latino enrollment total. This percentage was the minimum required by the Higher Education Act in 1992 (Laden, 2001). Because HSIs goals are to serve primarily Hispanic populations (Shehadeh & Termos, 2014), they are found in metropolitan areas with increasing Hispanic and Latino populations. Some of these areas include Los Angeles, San Antonio, Chicago, Philadelphia, Detroit, and Miami (Laden, 2001). Vigil discusses the increasing rates of Latinos in these areas due to the demand of unskilled temporary labor and for seemingly attainable housing opportunities. Although HSI's help Latino students in higher education, "HSI's do not have a declared, specific mission to serve Hispanics" (Laden, 2001).
Title V of the Act, introduced in 1998, is another funding stream specifically for HSIs to assist them in improving their higher educational provision. ==Hispanic Association of Colleges and Universities==