But not federally-funded loans.
What a ridiculous thing to say. Federally funded loans are defaulted on all the time, most notably Obama's buddies who defaulted on nearly 6 billion of 'green' energy loans. Federally backed home loans are defaulted on all the time.
I don't think that the federal government should be buying any of these loans by private parties. So I suppose end that first, then fix student loans, otherwise there'll be a stampede to sell loans to the feds.