Summary
A 34-year-old defense contractor with a master's degree and two children was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The Statement of Reasons detailed three primary allegations: delinquent student loans totaling approximately $86,447, past-due home mortgage payments on an outstanding balance of $50,868, and ten past-due, charged-off, or collection accounts totaling approximately $8,730. These issues raised disqualifying conditions F.1.a, F.1.b, and F.1.c.
While mitigating conditions F.2.a, F.2.b, F.2.c, and F.2.d were considered, the judge ultimately found them insufficient. The denial was based on the applicant's unresolved delinquent debts exceeding $145,000, which included the student loans and other past-due accounts.
Crucially, the applicant failed to provide evidence of making payments on her consolidated student loans or actively addressing her other debts. Furthermore, there was no evidence presented of financial counseling or any good-faith effort to resolve these financial obligations. Consequently, the judge determined the applicant had not demonstrated responsible actions to address her financial situation, leading to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant has unresolved delinquent debts totaling over $145,000, including student loans and past-due accounts.
- The applicant did not provide evidence of making payments on her consolidated student loans or addressing other debts.
- There was no evidence of financial counseling or a good-faith effort to resolve her debts.
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.arejectedThe 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 ControlThe applicant's periods of unemployment were considered beyond her control.
- F.2.crejectedThe Individual Has Received or Is Receiving Financial Counseling
- F.2.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMay 30, 2017
- Answer filedJun 30, 2017
- Hearing held—Decided on the written record.
- Decision dateJan 5, 2018
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Importance of Demonstrating Responsible Financial Behavior for Security Clearance Approval