Student Aid Scam

⏱ 2 min read

Michele Denise Hill, a 48-year-old Detroit resident, pleaded guilty to running a decade-long scheme to swindle over $2.5 million in federal student aid funds. The scam, which started as early as July 2015 and continued until at least July 2025, involved Hill submitting fraudulent aid applications for more than 80 individuals who had no intention of attending college. Hill would obtain high school diplomas on their behalf, often from the same Florida online ‘fast-track’ school, and complete their coursework to create the appearance of academic progress.

Hill’s scheme was designed to extend the eligibility of these fake students for federal student aid, including Federal Pell Grants and Federal Direct Student Loans, across multiple semesters. She would then split the fraudulently obtained aid proceeds with the individuals involved in the scam. As a result of her actions, Hill caused over $3 million in federal student aid benefits to be awarded, with approximately $2.5 million actually disbursed.

Hill’s guilty plea was entered before United States District Judge Brandy R. McMillion. She has agreed to pay $2,530,854 in restitution to the Department of Education and faces a maximum penalty of 20 years in prison when sentenced on August 3, 2026.

The investigation was led by the U.S. Department of Education, Office of Inspector General, with support from the U.S. Attorney’s Office for the Eastern District of Michigan. The case highlights the ongoing efforts to combat student aid fraud and protect the integrity of the federal financial aid system.