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ISCR Case 16-02158.h1 — CASE

ISCR Case 16-02158.h1granted

Case Headnote

ISCR Case No. 16-02158.h1

grantedFeb 23, 2018· Hon. Francisco Mendez· hearing

Summary

This DOHA security clearance decision involved an applicant, a college graduate working at a U.S. military hospital, whose trustworthiness was initially questioned under Guideline F (Financial Considerations) due to delinquent student loan debts. The Statement of Reasons alleged that the applicant incurred a sizeable amount of student loan debt and subsequently fell behind on payments, though one significant debt was satisfied in 2015.

Despite these concerns, the applicant was granted her public trust position. This favorable outcome was based on several mitigating factors. The applicant provided documentation demonstrating active efforts to address her delinquent debts and fully disclosed her financial issues during the application and investigation process.

Furthermore, the applicant's financial situation showed clear improvement, supported by documentation from her financial advisor. These actions satisfied mitigating conditions 20(a), 20(b), 20(c), and 20(d), ultimately leading to the granting of her security clearance.

Why the Applicant Prevailed

The applicant provided documentation showing she was actively addressing her delinquent debts.
She disclosed her financial issues during the application process and investigation.
The applicant's financial situation was improving, as evidenced by her financial advisor's documentation.

Conditions Referenced

Mitigating

20(a)appliedThe Behavior Was Not Recent.
20(b)appliedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Applicant's Control.
20(c)appliedThe Applicant Has Made a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.
20(d)appliedThe Applicant Has a Reasonable Plan for Financial Stability.

Key Rule Quoted

“Persons applying for a position of trust with the Government are not required to be debt free, or have unblemished financial records, or a certain credit score.”

Procedural Posture

SOR issuedSep 20, 2016
Answer filed—
Hearing heldNov 21, 2017
Decision dateFeb 23, 2018Summary disposition granted.

Cite For

Mitigating Conditions Under Guideline F for Financial Issues
Requirements for Demonstrating Financial Responsibility
Evaluation of Financial Circumstances in Trustworthiness Determinations

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: Decision on RecordDecided: granted

The judge found that the applicant had financial concerns due to delinquent student loan debts but demonstrated significant efforts to mitigate these issues. The applicant's financial situation was improving, and the judge ruled in favor of the applicant, granting her request for a public trust position.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant incurred a sizeable amount of student loan debt. $23,000	For Applicant	Student Loan Debt	Admitted	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Applicant fell behind on her student loan payments. $12,000	For Applicant	Student Loan Debt	Admitted	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.c	The second largest SOR debt was satisfied in 2015.	For Applicant	Unspecified Financial	Admitted	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d–1.j	7 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	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.

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS

In the matter of: ) ) REDACTED ) ISCR Case No. 16-02158 ) ) Applicant for Public Trust Position

Appearances

For Government: Nicholas T. Temple and Tovah A. Minster, Department Counsel For Applicant: Pro se

02/23/2018 ______________

Summary Decision ______________

MENDEZ, Francisco, Administrative Judge:

On September 20, 2016, the Department of Defense (DoD) sent Applicant a Statement of Reasons (SOR) alleging trustworthiness concerns under the financial considerations guideline. Applicant answered the SOR and requested a hearing to establish her eligibility for a public trust position, which is required for her job at a U.S. military hospital. A hearing was held on November 21, 2017. Applicant testified and both parties submitted exhibits for the record.

On February 9, 2018, after reviewing all the evidence, I informed the parties that the case appeared appropriate for summary disposition in Applicant’s favor. Department Counsel did not object to resolution of the case through summary disposition. (Exhibit I.)

Findings of Fact, Law, and Conclusion

Applicant was in her first or second year of college when the school was forced to close after suffering extensive damage from Hurricane Katrina. Applicant relocated and began the process of applying to other schools. She was admitted to a well-respected private college, but only received a partial academic scholarship and incurred a sizeable amount of student loan debt. After graduating from college, Applicant experienced periods of unemployment and underemployment, and fell behind on her student loan payments. She was hired by her current employer in 2013, and immediately began the process of addressing and resolving her delinquent debts. She provided documentation showing that she paid or was paying the debts listed on the SOR.1 She disclosed the information about her financial issues in her application for a public trust position and discussed them fully during the course of the ensuing investigation. Applicant also provided documentation from her financial advisor, which reflects favorably on the way she presently handles her finances. Despite recent setbacks, Applicant’s financial situation continues to improve.

Persons applying for a position of trust with the Government are not required to be debt free, or have unblemished financial records, or a certain credit score. However, they are expected to present evidence mitigating concerns raised by delinquent debt. They are also required to show that they manage their current finances in a manner consistent with the expectations for those granted access to sensitive information.2

Applicant met her burden of proof and persuasion in mitigating trustworthiness concerns raised by her financial circumstances. As required by the National Security Adjudicative Guidelines,3 I evaluated the concern at issue by weighing the evidence, both favorable and unfavorable, and considered such evidence in light of the applicable disqualifying and mitigating conditions, and whole-person factors. Specifically, I find that mitigating conditions ¶¶ 20(a) – 20(d) apply and find for Applicant as to the SOR allegations. Overall, the record evidence leaves me with no questions or doubts as to Applicant’s eligibility for access to sensitive information. Accordingly, Applicant’s request for a public trust position is granted.

____________________ Francisco Mendez Administrative Judge

FOOTNOTES

1 See Exhibits A and D (paying student loan debts, referenced in SOR 1.a and 1.b, through a payment plan entered into in 2013, reducing balance from $23,000 to $12,000); Exhibits B and F (second largest SOR debt, 1.c, was satisfied in 2015); Exhibits C and G (paid or is paying the debts in 1.e – 1.j).

2 See generally ISCR Case No. 07-06482 at 3 (App. Bd. May 21, 2008) (“[A]napplicant is not required, as a matter of law, to establish that he [or she] has paid off each and every debt listed in the SOR. All that is required is that an applicant demonstrate that he [or she] has “ . . . established a plan to resolve his [or her] financial problems and taken significant actions to implement that plan.”) (internal citations omitted).

3 The guidelines became effective on June 8, 2017, through Security Executive Agent Directive 4. The guidelines are incorporated into the current version of DoD Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program, and are publically available on the DOHA website.