The Centre Daily Times reports the group called PSU For All Student Equality will lead a demonstration Thursday.
The event comes in reaction to a picture of sorority sisters at a Mexican-themed party. The sisters wore fake mustaches and sombreros. A sign in the photo says "will mow lawn for weed + beer."
University junior Manuel Figueroa says marchers will include members of multicultural groups and students concerned about campus diversity. About 5 percent of Penn State students are Latino.
The Chi Omega sorority has apologized and is on probation. University president Rodney Erickson admonished the students last week but declined to pursue disciplinary action due to free speech protections.