Summary
The applicant, a 53-year-old federal contractor and military veteran, faced security concerns under Guideline F due to charged-off student loans cosigned for his son, who defaulted. The applicant was unaware of the defaults until they appeared on his credit report and took prompt action to address other student loans. The judge found that the applicant mitigated the financial concerns, granting him eligibility for a security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: charged-off student loans for $22,578 (1.a). charged-off student loans for $17,072 (1.b). charged-off student loans for $12,188 (1.c). charged-off student loans for $10,434 (1.d).
The judge granted the clearance. The government raised disqualifying conditions F.1.a, F.1.b. The judge applied mitigating conditions F.2.a, F.2.b, F.2.d. The decision turned on the following: The applicant was unaware of the charged-off loans until they appeared on his credit report; The loans were included in his son's Chapter 13 bankruptcy, which the applicant did not cause; The applicant took prompt action to address other student loans after becoming aware of the situation.
Why the Applicant Prevailed
- The applicant was unaware of the charged-off loans until they appeared on his credit report.
- The loans were included in his son's Chapter 13 bankruptcy, which the applicant did not cause.
- The applicant took prompt action to address other student loans after becoming aware of the situation.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.2.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- F.2.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the Circumstances
- F.2.dappliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
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.”
Procedural Posture
- SOR issuedJul 30, 2016
- Answer filed—
- Hearing held—
- Decision dateAug 2, 2017
Cite For
- Mitigation of Financial Concerns Under Guideline F Due to Lack of Awareness of Debts
- Impact of Familial Financial Obligations on Security Clearance Eligibility
- Consideration of Good-faith Efforts to Resolve Debts in Security Clearance Decisions