Introduction The United States is one of the nations where racial discrimination has been a common practice for a very long time. However, there has been a concerted effort in this society to fight this vice. This country is composed of people of different races. Many people from other nations around the world have acquired the citizenship of the US hence becoming a part of the nation. Historically, there have been serious incidences of racial inequality. Although this is believed to have been reduced tremendously, there are still some elements of racial inequality and discrimination in several institutions. This research paper seeks to specifically explore the extent of racial inequality in schools and other learning institutions and its effects. It is worth mentioning that a considerable part of the United States’ population has been going to school to a given level. Although a smaller percentage might not have got the opportunity to attend the formal learning institutions, they have had a chance to attend other technical institutions. In these learning institutions, several instances of racial discrimination have been reported. Several schools in American cities are full of Afro-American and Latino students, who are considered the middle class. In addition, the same schools have an inexperienced staff that lacks knowledge and skills and is less diversified (Dubourdieu 47). Currently, schools for students from the Afro-American and Latino families are moved to the suburban district schools that are believed to be poorly equipped and less qualified teachers work there, while the students from the white families occupy the best-equipped schools with the most experienced staff. This segregation in education has a very high impact on the performance of students from both sides. On average, the rates for graduation in public high schools differ. For the whites it is 83%, for blacks 66.1% and 71.4% for Latinos. Comparing the number of students with bachelor’s degree within the age bracket of 25-29, the whites have the highest one with 39%, followed by the blacks with 20% and lastly the Latinos with 13% (Moore 47). These differences show that both the Afro-Americans and Latinos are highly disadvantaged in education and in the overall outcome, while the whites are advantaged. In the United States, there are also different technical institutions for the whites and those for other groups. Due to their favoring education atmosphere, students from the white families end up getting the best results and hence the best employment positions in the nation unlike the blacks who end up performing poorly, which lead to their segregation in the job market. According to Street, apart from allocating funds to schools to do what is supposed to be done, there are three other core factors that influence the outcome of students (114). These factors include families which students come from, the experience of the teaching staff and availability of other students to create a competitive environment. The above mentioned incidences of discrimination clearly show that the rate of racial disparities is very high. To create positive and equal outcome for all students in the United States, there is need to address this racial inequality in schools. Ethnicity is very crucial for any grown or growing nat