There's one more thing I'd like to say about loans. Is there a tax benefit to choosing an income-driven repayment plan?
Yes you might have to pay taxes on the amount forgiven especially if you are making payments of $0 per month.
If I default on a Federal Family loan, what are some of the things they can do to me?
Your state tax refunds may also be withheld and applied toward repayment of your loan, and you may also lose your driver's license or other state-issued licenses.