Called the Former Majority Association, the group stemmed from one man's struggle to find scholarships he was eligible for. Most, he claimed, were reserved for women or visible minorities.
"We have a very simple mission: to fill in the gap in the scholarships offered to prospective students. There are scholarships offered for almost any demographic imaginable," reads the group's mission statement.
"In a country that proclaims equality for all, we provide monetary aid to those that have found the scholarship application process difficult because they do not fit into certain categories or any ethnic group."
The group will award five $500-scholarships to applicants who are "caucasian, male, demonstrate a commitment to education, and substantiate financial need."
The group, based in San Marcos, Texas, claims it condemns racism and will not accept applications or donations from groups of people associated with white supremacy groups. It also claims it has no official stance on affirmative action.
"We have no hidden agenda to promote racial bigotry or segregation. FMAE's existence is dedicated around one simple principle - to provide monetary aid for education to white males who need it."
The group has prompted cheers and jeers from the university community.
Chip Wozniak, writing in the University Star, the Texas State University's student newspaper, says the scholarship "uses discrimination to promote equality."
"It's hard to commend the association for risking their reputation by offering a scholarship to a group that has historically been on the favoured side of favouritism," he wrote.