Summary
A 39-year-old former Army National Guard member was denied a security clearance due to financial considerations under Guideline F. The applicant faced concerns over multiple defaulted debts exceeding $36,000, which included student loans and medical bills.
Specifically, the Statement of Reasons alleged the applicant defaulted on two student loans totaling $34,759 and seven other debts totaling $2,045. These student loan debts were in collection for $25,616 and $9,143, respectively. The applicant did not demonstrate progress toward resolving the debts he did not dispute and failed to disprove his liability for adverse information on his credit record.
Disqualifying conditions were raised, and mitigating conditions were considered. However, the clearance was ultimately denied because the applicant defaulted on the specified debts, did not show progress in resolving undisputed debts, and failed to disprove liability for adverse credit record information.
Why the Applicant Was Denied
- Applicant defaulted on two student loans totaling $34,759 and seven other debts totaling $2,045.
- He did not demonstrate progress toward resolving the debts he did not dispute.
- He failed to disprove his liability for the adverse information on his credit record.
Conditions Referenced
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(b)rejectedUnwillingness to Satisfy Debts Regardless of the Ability to Do SoThe absence of documentation showing reasonable steps to resolve his delinquent debts.
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe medical debts were incurred due to being a victim of a robbery.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant provided no documentation of any payments or efforts to resolve debts.
Key Rule Quoted
“The security clearance adjudication is not a proceeding aimed at collecting an applicant’s personal debts. It is a proceeding aimed at evaluating an applicant’s judgment, reliability, and trustworthiness with regard to his fitness or suitability to handle classified information appropriately.”
Procedural Posture
- SOR issuedSep 21, 2021
- Answer filedOct 7, 2021Requested a decision on the written record.
- Hearing held—Decision made based on written record.
- Decision dateMar 7, 2022
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Impact of Financial Distress on Security Clearance Eligibility Under Guideline F