The governing board of an institution of higher education may waive a fee it is authorized to charge if the board determines that:
(1) a student is enrolled only in distance learning courses or other off-campus courses of the institution;
(2) the student cannot reasonably be expected to use the activities, services, or facilities on which the fee is based; and
(3) the waiver of the fee will not materially impair the ability of the institution either to service any debt on which the fee is based or to offer or operate the particular activity, service, or facility supported by the fee.