This is basically what I was getting at. He's surrounded by people who are covering up his fraud; his leaving gets that weight off of their shoulders.
If I'm remembering correctly he doesn't have a university degree; at the beginning of season 2 Jessica pointed out that there was no record of him graduating from any college. Mike himself said he was kicked out for selling test answers to the Dean's daughter. Even though they never mentioned it I would hope that at some point Lola hacked into system at the college as well and put him in as a graduate.
I agree with this. Rachel is far from my favorite character but her reaction was on point. They are clearly in it for the long haul and his fraud would seriously jeopardize their future. Besides the jail time he could face her knowing and not reporting him would kill her career in law.
A thousand times yes! Jessica is the most awesome woman on the show and she deserves a little romance of her own. I too would love to see her and Harvey together; their chemistry is amazing. I'd enjoy that pairing more than Harvey and Donna.