Summary
A 37-year-old former Air Force member was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons (SOR) detailed several allegations, including a deficiency on a defaulted mortgage, an outstanding student loan, and unresolved debts totaling over $277,000. While some debts were paid, such as a $1,289 payday loan, an $809 education loan overpayment, and an $81 utility bill, all resolved in June 2016, the applicant did not provide evidence addressing the status of a large student loan or demonstrating financial counseling.
The denial was based on the applicant's admission of 17 delinquent debts exceeding $277,000, many of which remained unresolved. The applicant also failed to provide evidence of financial counseling or a budget to demonstrate financial stability.
Ultimately, the applicant did not prove that she acted responsibly regarding the circumstances that led to her financial difficulties, leading to doubts about her reliability and trustworthiness. Disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), and AG ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied.
Why the Applicant Was Denied
- The applicant admitted to 17 delinquent debts totaling over $277,000, many of which remain unresolved.
- The applicant did not provide evidence of financial counseling or a budget demonstrating financial stability.
- The applicant failed to prove that she acted responsibly under the circumstances leading to her financial issues.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Beyond the Person's ControlThe applicant's financial problems were attributed to her divorce, pregnancy without insurance, and unemployment.
- AG ¶ 20(c)rejectedFinancial CounselingThe applicant did not provide evidence of receiving financial counseling.
- AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsThe applicant made a good-faith effort to resolve six of the SOR-listed debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedMay 9, 2016
- Answer filedMay 9, 2016Applicant elected to have her case decided on the written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateOct 10, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Instability on National Security Eligibility
- Requirements for Mitigating Financial Considerations Under Guideline F