It’s funny how “Hispanic” is definitely a thing, unless it isn’t. Though it’s not funny being turned down for a scholarship!
You would think Italians would be counted as Latins since (a)it is a Latin language from the family as Spanish and (b)Italian immigrants make up the largest portion of Argentina, the second larges country in South America. The largest, Brazil, doesn't count in most La Raza circles either because they speak Portuguese, also a Latin language.
There seems to be a very fine line between having enough people in La Raza to claim your own special racial preference, but still excluding those who might be polluted with too much European blood.