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She is being admitted to a nursing home. What happens with Pennsylvania law when this happens?

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If the loans are considered validly agreed to, you might be able to consider bankruptcy. She most likely does not have to worry about her credit rating any more. But, how is her nursing home care being funded? If it will be Medicaid, would she state that her intention is to return to her home? Do you have POA? If you do, do you have the incapacity letters in hand? Sorry this has happened this way...hopefully there is some recourse for her so she can get care.
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What kind of loans? Has she used all the proceeds?

If she had been diagnosed with dementia at the time she applied for and signed the loans, she may have been exploited as a vulnerable adult not qualified to make financial decisions. You'd probably have to retain an attorney to challenge the loans on that basis, but if she's used the proceeds and can't repay, I suspect the lenders will consider foreclosure, unless it can be determined that she's judgment proof.

Is she being admitted on private pay? Is Medicaid in the picture now or in the foreseeable future?

You asked about PA law specifically; what I've written is general US law; you'd have to find someone such as an attorney to provide more specific information on PA law in this situation. And you'll need to provide additional information on the specific type of loans.
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