(a) A veteran or other individual eligible to receive educational benefits administered by the United States department of veterans affairs, through any provision of the United States Code, shall not be required to pay out-of-state tuition or any out-of-state fee when the veteran or other individual is:

(1) Enrolled in any public institution of higher education in this state;
(2) Utilizing such benefits at the enrolling institution; and
(3) Living in the state of Tennessee, regardless of the individual’s formal state of residency.
(b) The board of regents, the board of trustees of the University of Tennessee, and each state university board of trustees may classify a veteran or military-affiliated individual as a Tennessee resident who is not required to pay out-of-state tuition or an out-of-state fee if the veteran or military-affiliated individual is:

(1) Enrolled in the public institution of higher education; and
(2) Resides outside the state of Tennessee.