Summary
The applicant, a 50-year-old federal contractor, faced security clearance denial under Guideline F due to unresolved financial issues, including delinquent student loans and medical debts. Despite claiming some debts were transferred or resolved, the judge found insufficient evidence of financial management or counseling, leading to a decision against the applicant.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The student loan owed to DoEd (formerly USF) for $51,618 was reported delinquent in March 2017 (1.a). A $66 medical debt is unresolved (1.b). A $56 medical debt is unresolved (1.c). A $919 debt owed to a jewelry store was paid in November 2021 (1.d). The student loan owed to DoEd (formerly NL) for $16,316 was opened in March 2006 (1.e). The student loan owed to DoEd (formerly NL), for $8,522 was opened in March 2006 (1.f).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant has a history of being unable to satisfy her debts, particularly three student loans that became delinquent in 2017 and 2019; The applicant did not present evidence of having taken steps to establish payment plans for her debts prior to the COVID-19 deferment; The applicant failed to demonstrate that she sought credit or budget counseling or initiated payment plans for her significant student loan debt.
Why the Applicant Was Denied
- The applicant has a history of being unable to satisfy her debts, particularly three student loans that became delinquent in 2017 and 2019.
- The applicant did not present evidence of having taken steps to establish payment plans for her debts prior to the COVID-19 deferment.
- The applicant failed to demonstrate that she sought credit or budget counseling or initiated payment plans for her significant student loan debt.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's health problems and underemployment were circumstances beyond her control.
- AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsThe applicant resolved a jewelry debt.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedFeb 17, 2022
- Answer filedMar 23, 2022
- Hearing held—Decided on the written record without a hearing.
- Decision dateNov 1, 2022
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Insufficient Evidence of Financial Management or Counseling
- Impact of Unresolved Debts on Security Clearance Eligibility