I wasn't implying anything against you, rk.
A scholarship like that isn't meant to be demeaning at all. It's just available, whether you need/want it or not.
One thing that many universities strive for (on their own, doesn't necessarily have to do with Affirmative Action laws), for the benefit of all of their students' education and experience, is cultural diversity, be it through race, religion, sex, or financial background. A scholarship like that helps schools to reach their goals.
Fact is, Native Americans are pretty much the most minority of the minorities, so some schools like to offer extra incentives to encourage enrollment.
You know, there ARE people who get some things handed them because of their families, though it would never get mistaken for having to do with
need.