Summary
The applicant, a 46-year-old badging clerk employed by a defense contractor, sought a security clearance under Guideline F due to financial considerations. The applicant had multiple debts primarily related to student loans, which were attributed to periods of unemployment and a medical issue. The judge found that the applicant had made significant progress in resolving her debts and demonstrated financial responsibility, leading to a favorable decision.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Charged-off student loan for $9,331. Applicant is making $179 monthly payments and account is current. As of the hearing date, her loan balance had been reduced to $4,120. DEBT BEING RESOLVED (1.a). Collection account for $6,544. DEBT BEING RESOLVED (1.b). Collection account for $6,152. DEBT BEING RESOLVED (1.c). Collection account for $3,898. DEBT BEING RESOLVED (1.d). Collection account for $3,836. DEBT BEING RESOLVED (1.e). Collection account for $3,356. DEBT BEING RESOLVED (1.f). Collection account for $2,919. DEBT BEING RESOLVED (1.g). Collection account for $2,141. DEBT BEING RESOLVED (1.h). Collection account for $1,462. DEBT BEING RESOLVED (1.i). Collection account for $1,119. DEBT BEING RESOLVED (1.j). Charged-off student loan for $884. Applicant settled and paid this account for the lesser amount of $361 in September 2014. DEBT RESOLVED (1.k). Past-due credit card account for $135. Applicant has been making payments on this account since December 2013. The account has been rehabilitated and is in good standing. DEBT BEING RESOLVED (1.l). Collection account for $277. The account is listed as 'closed' on Applicant’s January 2014 credit report. Department Counsel withdrew this allegation. DEBT RESOLVED (1.m). Delinquent medical co-pay account for $75. Account paid in full. DEBT RESOLVED (1.n). Delinquent medical co-pay account for $75. Account paid in full. DEBT RESOLVED (1.o). Delinquent medical co-pay account for $75. Account paid in full. DEBT RESOLVED (1.p). Delinquent medical co-pay account for $20. Account paid in full. DEBT RESOLVED (1.q).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant demonstrated a proactive approach to resolving her debts, including making regular payments and consolidating loans; The applicant's financial difficulties were largely due to circumstances beyond her control, such as unemployment and medical issues; The applicant provided evidence of good character and support from her employer, indicating reliability and trustworthiness.
Why the Applicant Prevailed
- The applicant demonstrated a proactive approach to resolving her debts, including making regular payments and consolidating loans.
- The applicant's financial difficulties were largely due to circumstances beyond her control, such as unemployment and medical issues.
- The applicant provided evidence of good character and support from her employer, indicating reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(d)appliedIndividual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedAug 13, 2014
- Answer filedSep 15, 2014
- Hearing heldNov 4, 2014
- Decision dateJan 8, 2015
Cite For
- Mitigation of Financial Issues Under Guideline F
- Consideration of Circumstances Beyond an Applicant's Control in Financial Cases
- Importance of Demonstrating a Plan for Debt Resolution in Security Clearance Cases