That’s the observation they are going to make when considering your residency.

So, first step is to take steps to establish that you are a citizen of Illinois. Change your DL (and car registration, insurance, etc…), register to vote in Illinois. Get a job and pay taxes in Illinois (or pay out of state taxes to Illinois). Do things that people in Illinois do to establish that they live in Illinois.

“For an independent student to be considered a resident of Illinois s/he must have physically resided in Illinois for 12 continuous full months immediately prior to the start of the academic year for which assistance is requested and Illinois must be his/her true, fixed, and permanent home.”

All graduate students are considered independent. The “true, fixed, permanent…” is going to be determined by which government you submit to. Presently you imply by the Michigan DL and Michigan taxes that you submit yourself to the State of Michigan.