Well, I'm Austrian, but the two culture are so similar it's pretty the same (even the language is

).
Frankly speaking, I do think that generally in some Parts of Germany people are more racist than in America.
But this racism is primarly against low-skilled skilled blue collar worker from easteren Europe, who (in the opinion of some Germans) take away their jobs.
I dunno what racial background you have, but I doubt that it's southeasteren European, and if you're Asian I don't think that you will face any problems.
Furthermore, if you are a Student anyway, there won't be any problems at all. Especially if you go to a big city, you will find very open minded people who will welcome you.
So my advice is, go to a big city (like Munich or Hamburg), and speak English only. Then you will be treated very well, and the people will be happy to use and show their English skills.
The Problem is, that Germany had a low-birth rate, so they needed alien residents/workers. But now, as the economy isn't doing well, there aren't enough jobs, and so some "native" low-skilled workers are angry that "foreigners" take away their jobs. These "foreigners" live in Germany since 2 or 3 generations, though. Allthough some of them don't speak German at all.
I hope you are not scared now. This shouldn't bother you, as stated above, if you, a Student, go to a big city there shouldn't be any problems, especially the other studens and the profs will be very welcoming.
So I recommend going to Germany, I'm sure that you won't regret it.
One last point, pick a university in one of the sates of the former West Germany, these universities usually have a lot more money. Probably, you would also like to go to Vienna, Austria. I love this beautifull city, with very openminded people.

If any questions remain, please feel free to ask.