Adams v. Pa. Higher Educ. Assistance Agency (Signed Opinion)Annotate this Case
Adams dropped out of school in the 11th grade, moved to West Virginia, and receives social security disability on the basis of severe hypertension, migraine headaches, and mild mental retardation with marginal illiteracy. In 2007, Adams began receiving calls from a collection agency regarding a $2,500 guaranteed student loan procured in her name in 1986, for the purpose of attending school in Florida. Adams denied entering into the loan agreement, executing an application or promissory note, or attending school, but, nonetheless entered into a “rehabilitation agreement,” and made about 30 payments of $86.00/month to remove the “default” status of the loan, which was then owned by the Department of Education as a federally guaranteed Stafford Loan. She claims the agency threatened to take her social security if she did not make payments. In 2010, she again disavowed the loan, claiming identity theft. An investigation was launched. Adams eventually agreed to assume responsibility again, but, in 2011, asserted that she was entitled to discharge because she was disabled. She submitted her social security award decision, but failed to produce a required physician’s report. She retained counsel, but the agency continued written and telephone contact. The circuit court entered summary judgment for the agency, holding that the debt collection activity is required by Federal Family Education Loan Program regulations promulgated under the Higher Education Act of 1965. The Supreme Court of Appeals of West Virginia affirmed, finding her state Consumer Credit and Protection Act claim preempted by federal law.