Summary
A 45-year-old staff analyst for a U.S. defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to over $121,000 in delinquent debt, primarily student loans. The Statement of Reasons (SOR) detailed several specific financial issues. These included five delinquent state-program student loans from 1994-1998, totaling an estimated $96,000, and delinquent consolidated Federal student loans from 1995-1998, totaling $69,773.
Additionally, the SOR cited a delinquent $4,418 credit card account opened in 2007, which the applicant was an authorized user on, and two delinquent medical debts: one for $462 incurred in 2008 and placed for collection in 2010, and another for $114 incurred in 2013 and placed for collection in 2014. Disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), and AG ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were applied.
The denial was based on the applicant incurring over $121,000 in delinquent debt, most of which she was found unable or unwilling to repay. Her financial issues spanned over twenty years and remained unresolved. Furthermore, the applicant failed to document payments toward her debts, leading to concerns about her reliability and judgment.
Why the Applicant Was Denied
- Applicant incurred over $121,000 in delinquent debt, most of which she was unable or unwilling to repay.
- Applicant's financial issues date back over twenty years and continue without resolution.
- Applicant failed to document payments toward her debts, raising concerns about her reliability and judgment.
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(c)rejectedReceived Financial CounselingAlthough Applicant engaged in credit counseling, she did not establish that her financial situation is resolved or under control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsApplicant's repeated failure to follow through on expressed intentions to repay her delinquencies cast doubt on her willingness and ability to adhere to her proposed resolution plan.
- AG ¶ 20(e)appliedDispute of Legitimacy of DebtApplicant successfully disputed liability for the credit card balance on her mother's account.
Key Rule Quoted
“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedJun 17, 2016
- Answer filedAug 10, 2016
- Hearing heldMay 16, 2017Record left open until June 5, 2017 for additional evidence.
- Decision dateSep 11, 2017
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Insufficient Evidence of Mitigation Despite Character References
- Importance of Documented Repayment Efforts in Financial Considerations Cases