Medical Bill

[minhshin]

What is the name of your state? Texas
Hello, I am currently a dental student living off of federal education loan. Recently, my ex-health insurance denied a claim from 2006 and now i owe $14,000 to St. Joseph's Hospital. The lady in accounting called me and said I can either apply for a loan through citibank to pay it off or it will go to collection.
My questions are:
1) What happens if it goes to collection? Will I not be able to get federal loans for school? Will it devastate my credit to the point where I can't buy anything after I graduate?
2) I will have no problem paying off the balance in full after I graduate(which is 3 yrs away). So even if it goes to collection, if I pay it off in the future, will it repair my damages credit?
3) Is it better to appy for a loan and pay it off?? I just can't afford the loan payment right now and that is why I am thinking about letting it just go into collection if it wont damage my credit too badly and if it doesnt effect my federal school loans? I also heard there wont be any interest accrued on the account while its in collection. Is that true??
4) what would you do if you are in my shoes?? THank you for taking time to read my post!!