Summary
A 31-year-old applicant with a bachelor's degree and a real estate license was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The applicant's financial problems dated back to 2012, when she was a college student, and included 19 delinquent accounts totaling $53,623. These included nine student loan accounts totaling $43,974 that were placed for collection, and other delinquent debts estimated at $10,000.
The applicant attributed her financial difficulties to hardship during college and subsequent underemployment, despite reporting a significant income increase after starting work for a defense contractor in April 2020. While she claimed efforts to settle the debts, she provided no documentary evidence of payment on any of the delinquent accounts alleged in the Statement of Reasons. The applicant did resolve two delinquent medical accounts totaling $300 in June 2020 and June 2021.
However, the majority of her debts remained unresolved, and her overall financial conduct raised concerns about her reliability, trustworthiness, and good judgment. The applicant failed to meet the burden of proving her financial responsibility, leading to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant has a history of financial problems dating back to 2012, with 19 delinquent accounts totaling $53,623.
- The applicant provided no documentary evidence of payment on any of the delinquent accounts alleged in the SOR.
- The applicant's financial conduct raised significant concerns regarding reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person’s ControlMany of the applicant's debts resulted from underemployment and medical treatment.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not provide sufficient evidence of good faith in resolving debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedJun 25, 2021
- Answer filedAug 16, 2021Applicant elected to have her case decided on the written record.
- Hearing held—
- Decision dateMar 1, 2022
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Providing Documentary Evidence for Debt Resolution
- Consideration of Financial Conduct in Assessing Reliability and Trustworthiness