Summary
A 27-year-old applicant was denied a security clearance under Guideline F (Financial Considerations) due to approximately $51,428 in unresolved delinquent debts. The Statement of Reasons detailed several specific financial obligations.
These included a student loan account, delinquent since at least July 2023, placed for collection in the approximate amount of $50,883, with no evidence of payments or arrangements. A charge account, opened in February 2018, became delinquent in January 2020 and was charged off for approximately $413; the applicant admitted this debt, but no payments were evidenced. Another student loan, opened in August 2016, became delinquent in July 2019 and appeared to be sold, though the record did not establish current liability. Finally, a vehicle loan, opened in July 2019, became delinquent in early 2024 and was at least 120 days past due by November 2024 for approximately $648. While a February 2025 settlement agreement for $133 and a $33 payment were provided for the vehicle loan, no further payments were documented.
Despite admitting to some debts, the applicant failed to provide sufficient evidence of efforts to mitigate these financial concerns, leading to the determination that she did not demonstrate responsible behavior regarding her financial obligations. The clearance was therefore denied.
Why the Applicant Was Denied
- The applicant had unresolved delinquent debts totaling approximately $51,428.
- The applicant admitted to some debts but did not provide sufficient evidence of efforts to mitigate the financial concerns.
- The applicant did not demonstrate responsible behavior regarding her financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide sufficient evidence to establish circumstances beyond her control that contributed to her financial delinquencies.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate a track record of good-faith efforts to resolve these delinquent accounts.
- AG ¶ 20(e)rejectedDispute Legitimacy of Past-due DebtThe applicant did not provide documented evidence of a dispute or efforts to resolve the two unfamiliar accounts.
Key Rule Quoted
“An applicant is not held to a standard of perfection in his or her debt-resolution efforts or required to be debt-free. Rather, all that is required is than an applicant act responsibly given [her] circumstances and develop a reasonable plan for repayment, accompanied by ‘concomitant conduct,’ that is, actions which evidence a serious intent to effectuate the plan.”
Procedural Posture
- SOR issuedFeb 20, 2025
- Answer filedMar 11, 2025
- Hearing held—Decision based on written record.
- Decision dateNov 20, 2025
Cite For
- Denial of Security Clearance Due to Unresolved Delinquent Debts Under Guideline F
- Failure to Demonstrate Responsible Financial Behavior
- Insufficient Evidence of Efforts to Mitigate Financial Concerns