Summary
The applicant, a 52-year-old engine manager and retired U.S. Air Force master sergeant, faced security concerns under Guideline F due to delinquent student loans cosigned for his son. The judge found that the applicant had made good-faith efforts to repay the loans and that the financial issues were largely beyond his control, ultimately granting his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant cosigned with his older son on four student loans. His son graduated in May 2010 and was unable to find a job for about six months. When his son found a job, his pay was insufficient to enable him to make the payments on the student loans. In late 2010, Applicant was notified by the lender that the loan payments were past due. Applicant made the payments until October 2011, when his son told him that he finally had a good job and could make the payments (1.a). In July or August 2014, Applicant checked his credit report and noticed that his credit score had dropped dramatically. He found out that his son had not made the payments as promised, and the delinquent accounts were reflected in Applicant’s credit reports. All four student loans had become delinquent in April 2012 and were charged off in the amounts of $34,247; $33,999; $24,220; and $6,556 (1.b). Applicant made three $100 payments in 2014, a $100 payment in January 2015, and monthly $50 payments from March 2015 through March 2016, the month before the hearing (1.c). Applicant has accepted his son’s representations that he is financially unable to begin making the loan payments. He has never confronted his son about the delinquent loans or required his son to justify his failure to take over the payments (1.d).
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(c), AG ¶ 20(d). The decision turned on the following: The applicant demonstrated a good-faith effort to repay his son's student loans; The financial issues were largely due to his son's unemployment and underemployment, which were beyond the applicant's control; The applicant's long history of service and credibility contributed to the favorable decision.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to repay his son's student loans.
- The financial issues were largely due to his son's unemployment and underemployment, which were beyond the applicant's control.
- The applicant's long history of service and credibility contributed to the favorable decision.
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(c)appliedReceived or Is Receiving Counseling for the Problem And/or Clear Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Resolve Debts
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedOct 27, 2015
- Answer filedNov 20, 2015
- Hearing heldApr 20, 2016
- Decision dateJul 29, 2016
Cite For
- Good-faith Efforts to Repay Debts Under Guideline F
- Mitigating Conditions Related to Financial Issues Beyond Control
- Whole-person Analysis in Security Clearance Determinations