Though, in my private high school in Indiana, in 1999 I overheard kids more than once telling n*er jokes. I heard less overtly racists at the school saying things like "Yeah, it would be weird to have a black friend." These were the rich kids who parents owned the local businesses. I have a hard time believing the kids weren't getting it from the parents.
It seemed so absurd at the time, but I guess it's less surprising if you remember segregation had only officially ended 37 years ago, then, and that the klan remained active in Indiana for decades after.
That was 12 years ago, but I doubt it's all fixed since then. I know that school is still basically exclusively white despite the town being about 25% African American and 9% Latino. I fear the consequences of treating so many people as less than people will stick with us for a long time. Kind of naive to think they would all go away in just 50 years.