Summary
A 66-year-old project manager and government contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved delinquent student loans totaling over $18,000. The Statement of Reasons cited her failure to file federal income tax returns for 2013 and 2014, a $135 medical debt, and two student loans placed for collection, amounting to $9,038 and $9,368 respectively.
Disqualifying conditions under Guideline F were raised, including a history of not meeting financial obligations, an inability or unwillingness to satisfy debts, and a pattern of financial irresponsibility. While the applicant claimed financial hardship and circumstances beyond her control, the judge found insufficient evidence of progress in addressing the debts.
The denial was based on the applicant's failure to demonstrate sufficient progress in resolving the delinquent student loans, despite having the financial means. Additionally, she did not seek financial counseling, which could have assisted in debt resolution. Her refusal to pay the student loans on principle was viewed as a lack of responsibility, leading to the determination that financial security concerns were not mitigated.
Why the Applicant Was Denied
- The applicant failed to demonstrate sufficient progress in addressing delinquent student loans despite having the financial means to do so.
- The applicant did not receive financial counseling, which could have aided in resolving her debts.
- The applicant's refusal to pay the student loans on principle was viewed as a lack of responsibility.
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)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not act responsibly under the circumstances with respect to the debts.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsInsufficient evidence of a good-faith effort to resolve the student loans.
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedDec 5, 2015Actual issuance appears to be December 2016.
- Answer filedJan 21, 2017
- Hearing heldJul 9, 2018
- Decision dateSep 27, 2018
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Lack of Progress in Addressing Delinquent Debts
- Rejection of Mitigating Conditions Due to Failure to Act Responsibly