The governing board of an institution of higher education may waive all or part of any compulsory fee or fees authorized by § 54.503 in the case of any student for whom the payment of the fee would cause an undue financial hardship, provided the number of the students to whom the waiver is granted for a semester or term does not exceed 10 percent of the institution’s total enrollment for that semester or term. The board may limit accordingly the participation of a student in the activities financed by the fee so waived.