Summary
A 42-year-old applicant with an electrical engineering and computer science background was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed primarily from two periods of unemployment, totaling 19 months, which were deemed beyond his control.
The Statement of Reasons detailed numerous delinquent debts, including approximately $183,000 in student loans for which a payment plan and hardship forbearance were established. Other significant debts included several delinquent credit card accounts, a charged-off car lease, and various medical and consumer debts. The applicant demonstrated proactive financial responsibility by settling and paying many of these debts, establishing payment plans for others, and resolving disputes in his favor for some consumer debts. For example, he settled a $9,045 credit card debt for $5,800 and a $6,005 credit card debt for $2,700. His $220,427 mortgage, which had been delinquent by $5,534, was current as of March 2017.
The decision to grant the clearance was based on the finding that the applicant's financial problems were largely due to circumstances beyond his control. He actively engaged with creditors, made payment arrangements, and resolved most of his delinquent debts, with no new delinquencies appearing on his credit report. The judge concluded that the applicant is now in control of his financial situation.
Why the Applicant Prevailed
- The applicant's financial problems were primarily due to two periods of unemployment, which were circumstances beyond his control.
- He demonstrated financial responsibility by contacting creditors and making payment arrangements to resolve delinquent debts.
- The applicant has resolved most of his delinquent debts and has no new delinquent debt on his credit report.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(c)notedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
Key Rule Quoted
“Eligibility for access to classified information may be granted "only upon a finding that it is clearly consistent with the national interest to do so."”
Procedural Posture
- SOR issuedJun 9, 2016
- Answer filedJul 8, 2016
- Hearing heldMar 9, 2017
- Decision dateMar 30, 2017
Cite For
- Mitigation of Financial Issues Due to Unemployment Under Guideline F
- Good-faith Efforts to Resolve Debts
- Consideration of Whole-person Factors in Financial Cases