ISCR Case No. 22-01667

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ISCR Case No. 22-01667

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) Applicant for Security Clearance ) _______________________________________) DEPARTMENT OF DEFENSE DEFENSE LEGAL SERVICES AGENCY DEFENSE OFFICE OF HEARINGS AND APPEALS APPEAL BOARD POST OFFICE BOX 3656 ARLINGTON, VIRGINIA 22203 (703) 696-4759 Date: May 16, 2023

FOR GOVERNMENT James B. Norman, Esq., Chief Department Counsel FOR APPLICANT Pro se The Department of Defense (DoD) declined to grant Applicant a security clearance. On September 12, 2022, DoD issued a statement of reasons (SOR) advising Applicant of the basis of that decision―security concerns raised under Guideline F (Financial Considerations) of DoD Directive 5220.6 (January 2, 1992, as amended) (Directive). Applicant requested a decision on the written record. Department Counsel mailed the Government’s File of Relevant Material (FORM) to Applicant on October 28, 2022, and afforded him an opportunity to file objections or submit material in refutation, extenuation, or mitigation. Applicant did not submit a response to the FORM. On March 16, 2023, after reviewing the record, Defense Office of Hearings and Appeals Administrative Judge Bryan J. Olmos denied Applicant’s request for a security clearance. Applicant appealed pursuant to Directive ¶¶ E3.1.28 and E3.1.30.

The SOR alleged that Applicant had eight delinquent Department of Education (DoE) student loans totaling about $33,000 and that he had three other delinquent debts totaling about $46,000, including a past-due mortgage account. The Judge found against Applicant on each of the SOR allegations. For reason stated below, we remand the Judge’s decision for corrective action. In his appeal brief, Applicant provides new evidence, including a DoE document and documents concerning other debts. The Appeal Board is prohibited from considering new evidence. Directive ¶ E3.1.29. Applicant’s student loans arose from his attendance at ITT Technical Institute (ITT) between 2013 and 2015, for which he was awarded an associate’s degree. In the decision, the Judge noted that Applicant supplied a copy of a DoE loan rehabilitation application, dated March 2022, and that Applicant provided no evidence of payments in compliance with it. Decision at 2. In ISCR Case No. 21-01688 (App. Bd. Jan. 30, 2023), the Appeal Board took administrative notice of a DoE press release of August 16, 2022, that announced it was discharging ITT student loan debts. See https://www.ed.gov/news/press-releases/education-department­ approves-39-billion-group-discharge-208000-borrowers-who-attended-itt-technical-institute. We again take administrative notice of that press release, in which the Secretary of Education is quoted as saying: It is time for student borrowers to stop shouldering the burden from ITT’s years of lies and false promises[.] . . . The evidence shows that for years, ITT’s leaders intentionally misled students about the quality of their programs in order to profit off federal student loan programs with no regard for the hardship this would cause. [Appeal Board Exhibit 1.] See also ISCR Case No. 20-03688 (App. Bd. Mar. 2, 2023) and ISCR Case No. 21-02722 (App. Bd. Apr. 6, 2023), other remands involving DoE’s discharges of student loans. Based on the foregoing, the Judge’s decision is remanded so that he may determine the impact of DoE’s action on Applicant’s student loans, which makes up a large percentage of the alleged debt. The Judge may reopen the record to receive additional evidence from the parties. On remand, the Judge is required to issue a new decision. Directive ¶ E3.1.35. The Board retains no continuing jurisdiction over a remanded decision. However, a Judge’s decision issued after remand may be appealed pursuant to Directive ¶¶ E3.1.28. and E3.1.30.

The decision is REMANDED. Signed: James F. Duffy James F. Duffy Administrative Judge Chairperson, Appeal Board Signed: Moira Modzelewski Moira Modzelewski Administrative Judge Member, Appeal Board Signed: Allison Marie Allison Marie Administrative Judge Member, Appeal Board