Should I stop attending college because I have default a loan from back in 2003?

I'm currently attend kaplan online university but I recently receive a summons from student loan (Sallie Mae)from another school saying I'm in default. Currently I have medical issue so I'm unemployed but I get food stamps and my kids get S.S.I. checks. I also applied for istance. My question is will I lose my funding because of this default loan. I did my own pleading and declaration for my answer to summons. Should I just stop attending college because I will lose my funding because of this old student loan from a different school. I know I will lose when I got to court because I don't deny I owe the loans. I even thought apply for chapter 7 for private loan. but that cost money that I don't have. I have done a lot of research and found something about being judgmentproof.