Summary
This case concerns a 54-year-old male applicant seeking a security clearance under Guideline F (Financial Considerations), which was ultimately granted. The Statement of Reasons (SOR) alleged several financial issues, including a Chapter 7 bankruptcy filing in 2011. Additionally, the SOR cited a charged-off student loan of $21,828 that was cancelled in December 2018, and another student loan that was settled for $1,008 and paid off in February 2019. An IRS Form 1099-C was issued for a cancelled student loan, and a separate charged-off student loan without a specified amount or account number was resolved in the applicant's favor.
Disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(c) were raised. However, mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied.
The judge determined that the applicant had resolved all delinquent accounts listed in the SOR and demonstrated financial responsibility and control over his finances. It was also found that the applicant's past financial problems were largely beyond his control, and he had maintained financial stability since then. Based on these findings, the security clearance was granted.
Why the Applicant Prevailed
- The applicant resolved the delinquent accounts alleged in the Statement of Reasons (SOR).
- He demonstrated financial responsibility and control over his finances.
- The judge found that the applicant's financial problems were largely beyond his control.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedReceived Financial Counseling From a Legitimate Source
- AG ¶ 20(d)appliedInitiated and Adhered to a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“Eligibility for access to classified information may be granted "only upon a finding that it is clearly consistent with the national interest to do so."”
Procedural Posture
- SOR issuedMay 18, 2018
- Answer filedJun 7, 2018Requested decision based on written record.
- Hearing held—Decision made based on written record.
- Decision dateJul 16, 2019
Cite For
- Demonstrating Financial Responsibility Under Guideline F
- Mitigating Financial Issues Due to Circumstances Beyond Control
- Successful Resolution of Delinquent Accounts as a Basis for Clearance Approval.