Hispanic Serving Institutions are designated by the United States Department of Education with the purpose of increasing the educational attainment of the Hispanic population. Designation is determined by the percent of the population of full-time undergraduate students at the institution of higher learning. While this federal policy has positively impacted the percent of Hispanic high school graduates enrolling in undergraduate programs at 2- and 4-year colleges across the country, the Hispanic population continues to complete the 4-year degree at the lowest rate of any ethnic minority in the U.S. This paper explores the changing demographics of the U.S., the impact of educational attainment on Hispanics, and the Hispanic Serving Institution designation. Amendments to the current policy and institutional action items are proposed for improving graduation rates for Hispanic students.