A drop in black student enrollment this year has prompted the University to set aside about half a million dollars in scholarships for the 1994-95 school year -- a move unique to the University among the other Big Ten schools.

University President Joab Thomas decided to allocate more money for black students' scholarships after a 3 percent drop in black student enrollment, said James Stewart, vice provost for educational equity.

The $500,000 allotted for the scholarships comes from state money in the University budget. The University will divide all the state money among different areas, including faculty salaries and scholarships, said Executive Vice President and Provost John Brighton.

"As we approve the budget, we're adding some more money to scholarships -- in this case oriented to needy students," he said.

Although Brighton said the scholarships were for needy students and minorities, Stewart said the money this year was targeted at black students. Right now, the University does not plan to give the money to any other minority students next year, Stewart added.

Latino Caucus Co-Vice President Aileen Martinez said any University effort to increase diversity is good, but should provide for all diverse groups.

Comparisons with other Big Ten schools reveal that Penn State is the only university to set aside more money for merit-based scholarships strictly for black students.

But the University's rural location may necessitate this action. Except for the universities of Iowa and Minnesota, the other Big Ten schools are near metropolitan areas, attracting many students to those schools, Stewart said.

A decrease in high school graduates contributes to the lower number of black students at the University -- as do the increasing costs of education and students choosing forms of job training other than college, he said.

Dawn Williams, vice president of Black Caucus, said State College's small-town environment and racism encountered at the University discourages many black students from coming to the University. "I think the scholarships may help get students here, but we need to be concerned with black students graduating," she said.

When making decisions on financial aid for minorities, Penn State does not compare itself to other Big Ten schools but to the state's minority population percentage, said Bronwen Wagner, director of University scholarships and special programs.

But the University stands out among the Big Ten in its decision. Iowa, Purdue, Illinois, Minnesota, Northwestern, Indiana, Michigan State and Ohio State universities do not give scholarships based on race, but on need and merit.

The universities of Wisconsin and Michigan are both planning to allot more money for financial aid for minorities.

At each of these schools, private scholarships for minorities are available.