This is actually an interesting question for me. My dad is from Mexico, my mom is white and from the midwest. My siblings and I are such a mix. Some have dark skin, some have light. Some speak Spanish, some have no interest and do not. My brother who is darker skinned, says he is white. My sister has lighter skin, but has always felt she is Mexican. It interesting to decide for yourself what you will be called and how you feel. It's been a constant comparsion for me, I have cousins that are more Mexican than me, others who are less. What makes someone Latino? There are plenty of blonde haired blue eyed people in South America/Central America so I don't overplay the skin color. On the other hand, I have friends whose families have been here for generations, many, many generations (tracing roots back to the Spanish land grants) and call themselves "Mexican." I've noticed that if you have darker skin, you can call yourself Latino (regardless of connection to culture) but if you are lighter but have a close connection to your cultural hertiage, it is suspected you are in it to be cool or for scholarships. I have neices who are blond, blue eyed and frankly, a bit racist towards "minorities" but are they as Latino as their cousins who have darker skin? My dad is Mexican, but if her married a white woman, and his children married white people, at what point are the kids white? Especially, as I said before, skin color isn't a good indicator. I don't have an answer for you. I think one problem is the choices you are given. Many forms say "Hispanic-- non white" or "White-- non-Hispanic" which is pretty silly. In Mexico, my dad would say he is "white" since he isn't asian or black, but when he moved here he was informed that he wasn't white.
As far as scholarships, in California it is illegal for public schools to recruite you, enroll you or give you money based on ethnicty, but at private colleges there could be scholarships designated for certain ethnicities. I don't really know how much my ethinicity helped/hurt me get into college.