I'm being racially discriminated against by someone in TAFE. How should I respond? =(?

So I started a Hospitality Course at TAFE about 5 weeks ago, but I hung out with the wrong company and ever since I realised that they were the wrong company and started to hang out with better people, this one guy has been making racist remarks with what I would consider to be racially discriminative! But they probably wouldn't be considered to be though?

I asked this question in the "Friends Category" because I wanted to get your opinions on this thing that's really bothering me. =) Hope that's alright?! =P

Because, for example! He said while walking behind me "Funny Asian People" I'm actually thinking he said "F****** Asian People" but I didn't hear clearly as he said it so quickly! =( And he always seems to pick faults and make a big deal when it comes to the smallest of things with me!

But when he said "Funny Asian People", he hasn't said anything which is considered to be Racially discriminative yet, I don't think?! Yet I can tell he's become quite the bully you can imagine and it's something I need to tell someone about!

Is it something I can tell the head teacher about if it's not racially discriminative but bullying and harassing?

But what can I do if I feel as though it's getting to be way too much for me to handle? I don't feel like I can go through another 13 weeks of TAFE with such a person! =( =(