(a) Except as provided by Subsection (c), the governing board of an institution of higher education may waive a mandatory or discretionary fee for a student if the board determines that the student is not reasonably able to participate in or use the activity, service, or facility for which the fee is charged.
(b) Except as provided by Subsection (c), the governing board of an institution of higher education may waive a mandatory or discretionary fee for a specific category of students if the board determines that the waiver is in the best interest of the institution or is critical to the viability of an academic initiative.

(c) The governing board must ensure that a waiver under this section does not result in the institution’s inability to service a debt to which revenue from the fee is obligated or to support an activity, service, or facility for which the fee is charged.
(d) This section does not permit the governing board to waive payment of tuition or laboratory fees.
(e) The governing board may limit or prohibit a student’s participation in or use of an activity, service, or facility supported by a fee that is waived for the student under this section.