Now, after you're done collecting everything you want to collect head back to the Asylum Grounds and you may have noticed there was another guy there with blue hair and wearing a straight jacket, talk to him and he mentions Dr. Loboto...then fully describes what he looks like. If you listen to what he says you may notice he talks about 3 specific things, each similar to items we received from the patients we helped (Edward, Boyd and Gloria).
Go into your items and put on Loboto's Portrait, Gloria's Trophy, and the Straight Jacket then talk to this man again. He'll let you into the next area.
Head straight as far as you can over some mattresses at the end of the hallway to find a Psi-Card. At the top of the stairs head right over a hole in the ground and you'll find a door with boards over it, break in here to get a Psi-Card. On the opposite side of the room is a door that goes into a bathroom where you'll find a brain.
You've probably noticed the rats in this area that are a huge pain in the butt, they do lots of damage and confuse you. The best thing you can do is hold your shield for as long as possible when they start coming, having it upgraded is a noble idea. Shooting them when they are far is a grand idea as well, do what you can to not let them harm you. When using your shield you'll still get confused, but won't take damage so just wait out the confusion once the rats are gone.
After this go back out and head down the hall the other way. You'll come to an opening on your left with two poles you can use to get across. You'll come to another opening on the left now, go in here and drop down to get a Psi-Card. Only one way to go leading you up an incline of broken floor.
You'll come to another gap with a grind rail to get across, but half way across on the left is an open door, jump over in there and go behind the opened doorway to get another brain. Go the rest of the way across the gap and up on a rock on the right and then up a floor to get a Psi-Card on your way up and one at the top.
Now head the other way to some stairs. The floor kinda tilts weird up here to mess with your mind, head right and go out the door. Out here head to the far side where you should be able to see a Psi-Card on some rubble, then go back where you started and get on the ledge above the door you came out of. Up here is a plank that you can use to get over to a brain, then jump to a nearby Psi-Card. From here you can get on a swinging pole to another platform area with a cage on it.
From here you can jump up higher in the same direction to another area with a Psi-Card on it. Now up here head across the platform along the windows and your path will become blocked, just jump around this to more ledge area. There's an open door for you to enter, then head up the stairs. Straight off the top of the stairs is an open door to a room with a Psi-Card.
Back in the hallway is a mattress under a hole in the next floor, jump up through the ground to that floor. Straight through this floor go up the door that's opened like a ramp (this place has kinda shifted sideways it seems) In this area there is a bunch of green sludge, jump over it with the levi ball and you can land on an area going over it right next to a Psi-Card. Next drop down on the ground on the far side of the sludge for another card.
Now get back up on that ledge we got the card from and look towards where that last card was on the ground, you should see a section in the wall that looks like an opening, there's a brain in there. Now turn back around and get on the closest thing sticking out of the wall to you. Then up on the checkered part right above you. Turn back around in the direction of that brain and there's a pole you can climb up. Now run across this area to a Psi-Card, from there look down and to the right a bit for another card.
After floating down to this there's a pole you can climb up. From here you can jump to some grates you can climb on, then you'll be on a platform by a grated opening, climb up to find a Psi-Card. After getting this card you can climb up the outside of this window area. When you get in here look up and to the right a bit to see a brain and a Psi-Card, you can get there with your levi-ball.
Now go back to the window area you started at in this room and head around the path, where it stops jump up on top of the wall on the right and you'll see a full Psi-Challenge Marker to grab. Then head across that area again in the same way and jump the gap where it stops to more path. The next time the path stops is at a mattress, jump up to the next floor.
In this next area there are two doors, one on the right one on the left, the left room has a brain in it, they both have holes in the ceiling. We can use our levitation to open the right door and go up through the ceiling, then down into the other room to get the brain. Up here is a pole you can climb up to the next floor, then a tight rope you can walk across to a grind rail which will land you right at a Psi-Card.
There's a grate over the opening here you can climb up, you should see a brain near the top when you get there. After getting it turn around and head towards the window for a little scene. Ignore her warnings and head across the stairs into the elevator.