First off, tell your parents as soon as possible. Two reasons, first: they have probly been around the block a few times and can help you out with this. Second, and most importantly, when they find out (and they pay your insurance, they will find out) that you tried to hide it from them, they are going to take your car away. Your parents will have more respect for you if you fess up to your responsibility than if you try to run from your problems.
I would challenge the ticket but take a plea bargain if its there. It never hurts to challenge it. Have your parents show up with you and dress nicely and show up on time (this is very important, because if your late, you can be arrested and fined). Treat the judge and cop (if he shows) with respect. This is your first ticket so he might let you off with a driving class to get the points taken off your record and therefore, cost you less on your insurance.
I think your gonna have to suck it up and pay the ticket though. I'm not gonna preach about what a stupid driver you are because I too know that it is a lot of fun doing things that are less than legal in a car
Just a helpful tip though, dont do it in the open on busy streets that are likely patrolled and don't do it excessively. Keep it safe.
I don't know how it is in Illinois, but here in Washington I've never heard of anyone ever having their liscence held until they pay the ticket. Im not even entirely sure its legal to do that but he's a cop so he probly knows better than I do...