Summary
The applicant, a 32-year-old linguist employed by a defense contractor, faced financial concerns under Guideline F due to several delinquent debts totaling approximately $25,000. Despite admitting to some debts, the applicant demonstrated efforts to resolve them, including completing a rehabilitation program for student loans and establishing payment agreements for medical bills. The judge concluded that the applicant's financial issues were largely beyond his control and granted him eligibility for access to classified information.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: credit-card account referred for collection of $7,957. Applicant fell behind on his payments in 2016 because of his limited income (1.a). student loan referred for collection of $6,013. Applicant began a rehabilitation program in September 2018 and made $5 payments by automatic debit from his account from October 2018 through June 2019 (1.b). credit-card account referred for collection of $890. Applicant disputed the annual fees, to which he had not agreed, and the issuer removed the annual fees (1.c). credit-card account charged off for $823. Applicant believed the account had been paid off and closed and that he would contact the creditor and resolve it (1.d). medical bills referred for collection of $631. Applicant made payment agreements for these bills and made the final payment on one of them in May 2019 and the other in June 2019. The debts are resolved (1.e). student loans referred for collection of $5,587. Applicant began a rehabilitation program for these loans on September 25, 2019, and has made the first payment (1.f). student loans referred for collection of $2,235. Applicant began a rehabilitation program for these loans on September 25, 2019, and has made the first payment (1.g).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant's financial issues were largely beyond his control due to periods of unemployment and deployment; He demonstrated a good-faith effort to resolve debts, including completing a rehabilitation program for student loans and making payments on medical bills; The applicant's current employment and income level provided a reasonable basis for resolving remaining debts.
Why the Applicant Prevailed
- The applicant's financial issues were largely beyond his control due to periods of unemployment and deployment.
- He demonstrated a good-faith effort to resolve debts, including completing a rehabilitation program for student loans and making payments on medical bills.
- The applicant's current employment and income level provided a reasonable basis for resolving remaining debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedMay 1, 2019
- Answer filedMay 31, 2019
- Hearing heldAug 29, 2019
- Decision dateOct 25, 2019
Cite For
- Mitigating Conditions Under Guideline F for Financial Issues
- Consideration of Circumstances Beyond the Applicant's Control
- Good-faith Efforts to Resolve Debts in Security Clearance Cases