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ISCR Case 21-02725 — CASE

Case record

ISCR Case 21-02725

A decided public DOHA case, shown for research — not advice or a prediction.

Case Profile
Decision Date4/13/2023
Statusgranted
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Edward W. Loughran
Government Counsel: Brittany C. M. White
Case Summary
The applicant in this case was a 38-year-old employee of a defense contractor who sought a security clearance after receiving a Statement of Reasons (SOR) citing concerns under Guideline F (financial considerations). The SOR alleged multiple financial issues, including defaulted federal student loans totaling approximately $122,550, a past-due credit card debt, and other delinquent debts to a credit union.
During the hearing, the applicant admitted to having financial difficulties in the past, primarily due to the impact of the COVID-19 pandemic on his family's income and his subsequent unemployment. He provided evidence of his efforts to stabilize his finances, including making payment arrangements for his debts and applying for loan relief under the Student Loan Debt Relief Plan, which was approved. The applicant also disputed the legitimacy of the timeshare debt, asserting he never signed a contract for it. He demonstrated a commitment to addressing his financial obligations and maintaining a budget.
The administrative judge ruled in favor of the applicant, concluding that he had mitigated the financial concerns. The judge noted the applicant's proactive steps to resolve his debts, the temporary nature of his financial issues, and the positive character references he provided, which indicated his reliability and trustworthiness. As a result, the applicant was granted eligibility for access to classified information.
Guidelines Evaluated
- Guideline FFinancial Considerations · For Applicant
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Case Headnote

ISCR Case No. 21-02725

grantedApr 13, 2023· Hon. Edward W. Loughran· hearing

Summary

A 38-year-old defense contractor employee was granted eligibility for access to classified information despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several financial issues, including three defaulted federal student loans totaling approximately $122,550, a timeshare debt of $13,381, a credit card with a $7,418 balance that was $928 past due, and three past-due debts to a credit union totaling $1,474. These issues raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c).

However, the applicant successfully demonstrated mitigating factors. He credibly disputed the legitimacy of the timeshare debt and showed significant efforts to resolve his other financial obligations. He had a clear plan to address his financial issues and had already made substantial payments toward his outstanding debts.

Ultimately, the applicant's financial problems were deemed largely mitigated. The decision concluded that these issues no longer cast doubt on his reliability or trustworthiness, leading to the granting of his security clearance.

Why the Applicant Prevailed

The applicant credibly disputed the legitimacy of the timeshare debt and demonstrated efforts to resolve other debts.
He has a plan to address his financial issues and has made significant payments towards his debts.
The applicant's financial problems were largely mitigated and did not cast doubt on his reliability or trustworthiness.

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 Largely Beyond the Person's Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Past-due Debt

Key Rule Quoted

“A security clearance adjudication is not a debt collection procedure. It is a procedure designed to evaluate an applicant’s judgment, reliability, and trustworthiness.”
— ISCR Case No. 09-02160 (App. Bd. Jun. 21, 2010)

Procedural Posture

SOR issuedNov 18, 2022
Answer filed—
Hearing heldMar 29, 2023
Decision dateApr 13, 2023

Cite For

Mitigation of Financial Considerations Under Guideline F
Credibility of Applicant's Disputes Regarding Debts
Evaluation of Financial Issues in the Context of Overall Reliability and Trustworthiness

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

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: HearingDecided: granted

The judge found that the applicant had several financial issues, including defaulted federal student loans and other debts. However, the applicant's financial situation had stabilized, and he had taken steps to address his debts, leading to a decision in favor of granting the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Three defaulted federal student loans with balances totaling about $122,550; $13,381 owed for a timeshare; a credit card that was $928 past due with a $7,418 balance; and three debts to the same credit union that were past due for a total of $1,474. $122,550	For Applicant	Student Loan Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Other
1.b	$13,381 owed for a timeshare. $13,381	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Other
1.e	a credit card that was $928 past due with a $7,418 balance. $7,418	For Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	three debts to the same credit union that were past due for a total of $1,474. $1,474	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g–1.h	2 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.