Summary
A 42-year-old defense contractor employee was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) cited eight student loans in collection, totaling $57,628, which the applicant admitted owing. Payments on these loans had been inconsistent over the years, leading to the amount owed more than doubling due to interest.
Specific actions taken to address the debt included wage garnishment of $222 bi-weekly from September 2015 to January 2017, and the IRS withholding $2,338 from his 2015 tax refund in March 2016, both applied to his student loans. In September 2016, the applicant entered a loan rehabilitation program, agreeing to pay $107 per month for nine months. By January 2017, the loan balance was $50,944.
The applicant accepted responsibility for the lapsed payments and presented a viable plan for future payments. The decision to grant clearance was supported by the applicant reducing his student loan balance by nearly $10,000 since 2015, consistent payments under the rehabilitation program, and positive testimony from his manager regarding his job performance and reliability.
Why the Applicant Prevailed
- The applicant reduced his student loan balance by almost $10,000 since 2015.
- He entered into a repayment agreement and made consistent payments under a loan rehabilitation program.
- The applicant's manager testified to his excellent job performance and reliability.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurMost payments were involuntary.
- AG ¶ 20(c)appliedReceived Counseling for the Problem And/or Clear Indications That the Problem Is Being ResolvedThe applicant has a viable plan to pay his student loans.
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant has made significant progress in reducing his debt.
Key Rule Quoted
“The ultimate determination of whether to grant eligibility for a security clearance must be an overall commonsense judgment based upon careful consideration of the guidelines and the whole-person concept.”
Procedural Posture
- SOR issuedJun 6, 2016
- Answer filedJun 28, 2016Applicant initially elected to decide on the written record.
- Hearing heldJan 25, 2017
- Decision dateApr 13, 2017
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Importance of Credible Repayment Plans in Security Clearance Cases
- Whole-person Concept in Evaluating Security Clearance Eligibility