This study examined the relationship between African American students' perceptions of differential treatment by teachers and educational outcomes, and the factors that promote these outcomes in the context of perceived discrimination, focusing on the protective value of youth's cultural heritage, as well as individual characteristics. The participants, 385 African American students (50% female), were interviewed at 8th and 11th grade. Results indicated that early experiences with differential treatment predicted declines in importance of schooling and academic self-concept from 8th grade to 11th grade. Peer social support emerged as a protective factor such that, differential treatment was negatively associated with academic self-concept only for those who lacked strong peer support. Implications for promoting African American students' educational success in learning environments and directions for future research are discussed.