ISCR Case 17-01819.h1

Case Headnote

ISCR Case No. 17-01819.h1

grantedAug 24, 2018· Hon. Gina L. Marine· hearing

Summary

A 50-year-old database administrator with a master's degree in civil engineering was granted a security clearance despite concerns under Guideline F (Financial Considerations). The issues stemmed from two delinquent student loans she cosigned for her estranged daughter, who was solely responsible for repayment starting in 2015. The applicant became aware of the loans' collection status during a September 2016 security clearance interview, though she had previously known her daughter intermittently missed payments.

Unable to secure her daughter's commitment to resolve the debt, the applicant initiated her own repayment efforts. In July 2017, she finalized an arrangement involving an initial payment of $661, followed by monthly payments of $150, with a requirement to renew the arrangement every six months. She made consistent payments through August 2018, with the exception of two months in early 2018 when she failed to timely contact the agency for renewal.

The clearance was granted because the applicant initiated and maintained a repayment plan, demonstrating a commitment to resolving the debt. The financial issues were largely attributed to circumstances beyond her control, specifically her daughter's default. The applicant's current financial management and efforts to resolve the debt ultimately demonstrated reliability and good judgment.

Why the Applicant Prevailed

The applicant initiated a repayment plan for the delinquent loans and made consistent payments.
The financial issues were largely due to circumstances beyond the applicant's control, specifically her daughter's default on the loans.
The applicant's current financial management and commitment to resolving the debt demonstrated reliability and good judgment.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”

Procedural Posture

SOR issuedJun 26, 2017
Answer filedJul 13, 2017Updated answer submitted on August 18, 2017.
Hearing heldMay 16, 2018
Decision dateAug 24, 2018

Cite For

Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond the Applicant's Control
Demonstrating Good-faith Efforts to Resolve Debts
Consideration of the Whole-person Concept in Security Clearance Decisions

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant cosigned two student-loan accounts to help her eldest child pay for medical school. Her daughter was solely responsible for repaying them, with her first payments to begin upon her graduation in 2015. Applicant learned that those accounts were in collection status during a September 2016 interview she had in connection with her security clearance background investigation. Applicant was previously aware that her daughter had intermittently missed payments, but never to the point of defaulting on the loans. Applicant told the investigator that she would make inquiries about the account to determine her liability. $31,414	For Applicant	Student Loan Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.b	Given her inability to secure a commitment from her daughter to resolve the debt, Applicant initiated efforts to resolve it herself. In July 2017, she finalized an arrangement to repay the debt via an initial payment of $661 followed by monthly payments of $150. She is required to contact the creditor every six months to renew the arrangement. Applicant made consistent payments through August 2018, with the exception of two months (January and February 2018) when she neglected to timely contact the agency for the renewal. $31,414	For Applicant	Student Loan Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Other

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant cosigned two student-loan accounts to help her eldest child pay for medical school. Her daughter was solely responsible for repaying them, with her first payments to begin upon her graduation in 2015. Applicant learned that those accounts were in collection status during a September 2016 interview she had in connection with her security clearance background investigation. Applicant was previously aware that her daughter had intermittently missed payments, but never to the point of defaulting on the loans. Applicant told the investigator that she would make inquiries about the account to determine her liability.

$31,414

For Applicant

Student Loan Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(b) conditions largely beyond the person’s control; acted responsibly

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Other

1.b

Given her inability to secure a commitment from her daughter to resolve the debt, Applicant initiated efforts to resolve it herself. In July 2017, she finalized an arrangement to repay the debt via an initial payment of $661 followed by monthly payments of $150. She is required to contact the creditor every six months to renew the arrangement. Applicant made consistent payments through August 2018, with the exception of two months (January and February 2018) when she neglected to timely contact the agency for the renewal.

$31,414

For Applicant

Student Loan Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(b) conditions largely beyond the person’s control; acted responsibly

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Other

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Case Profile

Summary

Why the Applicant Prevailed

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES