This study examines the racial and ethnic distribution of the costs and benefits of higher education in California. This exploratory work documents the racial and ethnic distribution of these benefits, in the form of enrollments in different sectors and different types of institutions, as well as on the costs, in the form of the share borne by families versus the state. The study builds on the work of Hansen and Weisbrod, who examined the distribution of costs and benefits for higher education in California for students from different income groups. This study utilizes data from a variety of sources, including the California Postsecondary Education Commission, the California Student Aid Commission, EdFund of California, the National Center for Education Statistics, the U.S. Census Bureau, and other agencies and departments in California.