‘There’s a lot of people celebrating prematurely’: GOP could bring a legal challenge to block Biden’s student loan forgiveness plan

President Joe Biden announced last month that he would cancel up to $20,000 of student loan debt for many.

There are a lot of people who celebrate too early. A lot of people are upset about this because they think it's unfair.

The attorney general of the state is looking to bring a legal challenge to the plan. We will bring a challenge if we can.

GOP attorneys general from states such as Missouri and Texas, as well as Sen. Ted Cruz, R-Texas, and those connected to conservative think tank the Heritage Foundation, are said to be considering their options on trying to block Biden's plan.

The tens of millions of Americans who were just weeks ago celebrating their debt forgiveness are likely to be anxious.

Student loan borrowers stage an Aug 25, 2022 rally in front of the White House to celebrate President Joe Biden canceling some federal student debt.

The issue of 43 million people's debts could go to the Supreme Court if there is a drawn-out legal challenge.

The uncertainty for borrowers in the meantime is significant, according to a Harvard law professor.

Waiting too long could cause problems.

The people's expectations are getting set. If we can file a lawsuit, we should file it sooner than later.

A survey found Americans spend $314 a month on impulse purchases.

The GOP punished the middle class according to a White House spokesman.

The same people who voted for a $2 trillion tax handout for the rich and had hundreds of thousands of dollars of their own small business loan debt forgiven would be trying to keep millions of working middle class Americans in mountains.

The Department of Justice made the case for debt cancellation in a memo that was released by the Biden administration.

The executive branch was allowed to forgive student loans during national emergencies after the 9/11 terrorist attacks. A national emergency was declared by the Trump administration.

The president has the power to forgive student debt, but opponents will argue that the Heroes Act doesn't give him that power.

He thinks the president is on shaky legal grounds.

It will be the first hurdle for those hoping to bring a legal challenge against Biden. The case that student loan forgiveness causes personal injury would have to be made by someone who knows how to do it.

It is necessary to establish what courts call standing. If private lender's loans to students had been canceled, no one would have been hurt.

He was confident that he would find a lawsuit. He said that they were looking at ways in which loan forgiveness could hurt state costs and taxpayers, but that they also had other options.

There are a lot of different theories as to how you get the standing. Which is the best one?

Shafroth said it would be a mistake for the states to block the president from fulfilling his campaign promise. Biden promised to cancel 10,000 loans in the election.

He was endorsed by people who voted for him. It's better done through democracy.

CNBC contributors contributed to the report.