What should i do about my school loan HELP!!!?

so i was young and dumb.... i went to school and had to take out a 7,000 loan unfortunately i had to leave school because my grandmother had an stroke. the school i went to only allowed a certain amount of absent days before your dropped from the school and i was dropped but my loan somehow was still pending at school there for i now owe the school money!! because the school has to pay back my loan uggh.. and now my grandmother is alot better lifes better i want to go back to school but im afraid the loan went into default and i have to pay it back maybe its on my credit...which i dont need especially since i plan on applying for another school nxt year and most likely i will need to take out another loan... i have no clue what to do...Any ideas???