Summary
A 30-year-old applicant with an associate's degree was denied a security clearance under Guideline F (Financial Considerations) due to over $63,000 in unresolved delinquent debts. These debts included student loans and various consumer obligations. The judge determined that the applicant failed to demonstrate a good-faith effort to resolve these financial issues.
Specifically, the applicant had $23,939 in student loans on which he had never made a payment, despite contacting creditors in December 2016 to establish a payment plan. He was unable to afford an initial $4,000 payment. Another $24,527 in student loans, consolidated in January 2017, were deferred until January 2018, with no payments made. A $5,526 debt to an apartment complex, stemming from a lease he co-signed for his sister in 2013, remained unresolved despite hiring a lawyer in March 2016.
Additionally, several other debts remained unresolved, which the applicant claimed to be disputing. He hired a credit repair company in August 2016 to file disputes but provided no documentation to substantiate the basis of these disputes or their resolution. The denial was based on the numerous unresolved debts and the applicant's failure to provide sufficient evidence of a plan to manage or resolve them, indicating a lack of good-faith effort.
Why the Applicant Was Denied
- Applicant has numerous unresolved delinquent debts totaling over $63,000.
- Applicant failed to provide sufficient evidence of a plan to manage or resolve his debts.
- The applicant did not demonstrate a good-faith effort to repay overdue creditors or otherwise resolve debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlInsufficient evidence to establish full mitigation as the applicant did not document actions taken to manage obligations.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant's recent online financial counseling course did not demonstrate that debts were under control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsRecent actions did not demonstrate a good-faith effort to resolve long-standing debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsNo evidence provided to substantiate the basis for disputing the legitimacy of the debts.
Key Rule Quoted
“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedOct 7, 2016
- Answer filedNov 11, 2016
- Hearing heldMay 18, 2017
- Decision dateJul 24, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Impact of Financial Distress on National Security Eligibility