Summary
A 39-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons cited several debts, including a $60,060 student loan charged-off in May 2012, a $20,224 delinquent credit card debt paid in March 2017, and a $17,652 delinquent automobile repossession debt settled for less and paid in March 2017. Additionally, a $1,947 delinquent credit card debt was paid in February 2017, and a $115 utility bill was paid during the investigation.
While the applicant resolved several smaller debts and engaged in financial counseling, the significant student loan debt remained charged-off and unresolved for over five years. The applicant did not provide evidence of financial counseling specifically for this largest debt, nor clear indications that it was under control.
The denial was based on the applicant's failure to mitigate the financial concerns, particularly the outstanding student loan. The ongoing financial difficulties raised concerns about the applicant's judgment and reliability, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant failed to resolve a significant student loan debt of $60,060, which remained charged-off and unresolved for over five years.
- The applicant did not provide evidence of financial counseling for the largest debt, nor clear indications that it was under control.
- The applicant's financial difficulties were ongoing and raised concerns about his judgment and reliability.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.2.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.2.crejectedThe Individual Has Received or Is Receiving Financial Counseling for the ProblemThe applicant did not provide evidence of financial counseling for the largest debt.
- F.2.dappliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant resolved four of the five debts but did not address them until after receiving the SOR.
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 issuedJan 7, 2017
- Answer filedFeb 8, 2017
- Hearing held—Decided on the written record without a hearing.
- Decision dateFeb 23, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Importance of Demonstrating Financial Responsibility and Mitigation Efforts
- Impact of Ongoing Financial Issues on National Security Eligibility