ISCR Case 19-03942

Case Headnote

ISCR Case No. 19-03942

grantedJul 28, 2023· Hon. Gina L. Marine· hearing

Summary

A 47-year-old defense contractor's eligibility for access to classified information was reviewed under Guideline F (Financial Considerations) due to a history of delinquent debts. The Statement of Reasons (SOR) detailed several financial concerns, including two federal parent student loans totaling $45,043, which were in default as of August 2019. The applicant stated these defaults were unintentional.

Additional allegations included a $599 medical bill the applicant believed was paid via her health savings plan, a utility account debt she disputed as an error given her continuous service since 1994, and a $65 medical debt reported in collection that she denied any knowledge of. Disqualifying conditions under Guideline F were raised, specifically AG ¶ 19(a) and AG ¶ 19(c).

However, the applicant demonstrated significant mitigating factors. She proactively rehabilitated her student loans through the U.S. Department of Education's "Fresh Start" program, and all debts alleged in the SOR are no longer delinquent, with consistent payments being made. Her financial difficulties were attributed to circumstances beyond her control, such as family tragedies and the COVID-19 pandemic. Based on these mitigating conditions (AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e)), eligibility for access to classified information was GRANTED.

Why the Applicant Prevailed

The applicant took proactive steps to rehabilitate her student loans through the U.S. Department of Education's "Fresh Start" program.
All debts alleged in the SOR are no longer in delinquent status, and the applicant has made consistent payments towards her financial obligations.
The applicant's financial difficulties were largely attributed to circumstances beyond her control, including family tragedies and the COVID-19 pandemic.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Beyond the Person's Control
AG ¶ 20(c)appliedReceiving Financial Counseling
AG ¶ 20(d)appliedGood-faith Effort to Repay Debts
AG ¶ 20(e)appliedReasonable Basis to Dispute Debts

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”

Procedural Posture

SOR issuedAug 19, 2020
Answer filedNov 29, 2021
Hearing heldNov 18, 2022via video conference
Decision dateJul 28, 2023

Cite For

Mitigating Conditions Under Guideline F Due to Proactive Debt Management
Impact of External Circumstances on Financial Obligations
Demonstrating Financial Responsibility After Prior Delinquencies

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant took out two parent federal student loans ($12,000 in 2011, and $12,000 in 2013) to afford her daughter the opportunity to attend college. As of August 2019, the two student loans were in default status in an amount totaling $45,043. $45,043	For Applicant	Student Loan Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Rehabilitation Evidence
1.b	Applicant maintained that the student loans were not in delinquent status due to any intentional action on her part to avoid paying them.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.c	SOR 1.c involves a $599 medical bill incurred by Applicant on her behalf. She believed that the bill had been paid via her health savings plan (HSP). She did not become aware that the bill had not been paid until she received the SOR. $599	For Applicant	Medical Debt	Admitted	—	—	—
1.d	SOR 1.d involves a utility account Applicant asserted was reported in error. Applicant denied owing the debt on the basis that she had continuous service with the same utility company since 1994 and had no known delinquencies on her account. $486	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	SOR 1.e involves a $65 medical debt reported in collection status on two 2019 credit reports. Applicant denied any knowledge of the alleged debt or any other known delinquent medical debt. $65	For Applicant	Medical Debt	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant took out two parent federal student loans ($12,000 in 2011, and $12,000 in 2013) to afford her daughter the opportunity to attend college. As of August 2019, the two student loans were in default status in an amount totaling $45,043.

$45,043

For Applicant

Student Loan Debt

Admitted

—

(b) conditions largely beyond the person’s control; acted responsibly

Documented

Rehabilitation Evidence

1.b

Applicant maintained that the student loans were not in delinquent status due to any intentional action on her part to avoid paying them.

For Applicant

Unspecified Financial

Unknown

—

1.c

SOR 1.c involves a $599 medical bill incurred by Applicant on her behalf. She believed that the bill had been paid via her health savings plan (HSP). She did not become aware that the bill had not been paid until she received the SOR.

$599

For Applicant

Medical Debt

Admitted

—

1.d

SOR 1.d involves a utility account Applicant asserted was reported in error. Applicant denied owing the debt on the basis that she had continuous service with the same utility company since 1994 and had no known delinquencies on her account.

$486

For Applicant

Unspecified Financial

Denied

—

1.e

SOR 1.e involves a $65 medical debt reported in collection status on two 2019 credit reports. Applicant denied any knowledge of the alleged debt or any other known delinquent medical debt.

$65

For Applicant

Medical Debt

Denied

—

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Case Profile

Summary

Why the Applicant Prevailed

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

WHOLE PERSON CONCEPT

POLICIES

ANALYSIS

WHOLE PERSON ANALYSIS

FORMAL FINDINGS

CONCLUSION