Summary
A 54-year-old Internet technology specialist was denied a security clearance under Guideline F (Financial Considerations) due to significant delinquent debts totaling approximately $97,490. The Statement of Reasons detailed 16 separate delinquent accounts, including a $7,218 judgment for a student loan from May 2000, a $4,622 deficiency judgment from an automobile repossession in March 2002, and numerous smaller collection accounts for telephone, cell phone, and medical bills dating from 2002 to 2006.
The most substantial debts were two defaulted federal student loans, reported past due in August 2005, amounting to $18,391 and $61,967 respectively. While the applicant had made some payments, the judge found she had not acted responsibly in managing her financial obligations.
The denial was based on the applicant's inability to satisfy debts, with the largest debts remaining delinquent despite her employment since 2005. Furthermore, the applicant had not received financial counseling and had not demonstrated sufficient efforts to resolve her financial issues. Disqualifying conditions FC DC 19(a) and FC DC 19(c) were raised, while mitigating conditions FC MC 20(b) and FC MC 20(d) were applied, but ultimately did not overcome the security concerns.
Why the Applicant Was Denied
- The applicant has a total of 16 delinquent accounts amounting to approximately $97,490, indicating an inability to satisfy debts.
- The applicant's largest debts, federal student loans, remain in delinquent status despite her employment since 2005.
- The applicant has not received financial counseling and has not demonstrated sufficient efforts to resolve her financial issues.
Conditions Referenced
- FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)appliedHistory of Not Meeting Financial Obligations
- FC MC 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's husband's illness and her own health issues contributed to her financial situation.
- FC MC 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant has made some payments towards certain debts but significant financial issues remain.
Key Rule Quoted
“Failure or inability 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 information.”
Procedural Posture
- SOR issuedMay 13, 2008
- Answer filedJun 17, 2008
- Hearing heldSep 12, 2008
- Decision dateOct 29, 2008
Cite For
- Financial Obligations Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Mitigating Circumstances in Financial Issues