The bad news - yes you are responsible to pay back you federal student loans no matter what you used the proceeds for. The good news - there are several programs available to people with federal student loans that will allow you to make the payments manageable. Depending on your employment you may even be eligible to have part or all of your student loan forgiven over time.
Yes. Further even if you were to file bankruptcy you can not avoid repaying the college loans because they are exempt from bankruptcy. Because the money was loaned as part of a government loan for education, it doesn't matter what you spent the money on it will still have to be repaid even if you file bankruptcy. You can discuss the situation with a bankruptcy attorney to determine if you have any special circumstances, but generally you are out of luck.
I wish you well.
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