Summary
A 50-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to approximately $47,729 in delinquent debts. These debts included about $40,023 in student loans, delinquent for approximately 17 years, and three unpaid judgments totaling $5,706. The Statement of Reasons also noted that the applicant had not made good-faith payments or contacted creditors, and her updated financial statement showed expenses exceeding income. She indicated she was awaiting a divorce and property settlement before addressing these accounts.
Disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(c) were raised. While mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered, they were not sufficient to overcome the concerns.
The denial was based on the fact that the $47,729 in delinquent debts remained unpaid and unresolved. The applicant had not made good-faith payments or contacted creditors to resolve her debts, and her financial problems were not deemed sufficiently beyond her control. Furthermore, she had not acted responsibly to address her debts.
Why the Applicant Was Denied
- Applicant has approximately $47,729 in delinquent debts that remain unpaid and unresolved.
- Applicant has not made good-faith payments to creditors or contacted them to resolve her debts.
- Applicant's financial problems were not sufficiently beyond her control, and she has not acted responsibly to address her debts.
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 Unlikely to RecurApplicant's delinquent debts are still owed and she has not taken action to resolve them.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlApplicant did not provide sufficient evidence that her financial issues were beyond her control.
- AG ¶ 20(c)rejectedReceived or Receiving Counseling for the ProblemApplicant has not demonstrated clear indications that her financial problems are being resolved.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsApplicant has not made any payments or contacted creditors regarding her debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedAug 27, 2010
- Answer filedSep 25, 2010
- Hearing heldDec 7, 2010
- Decision dateJan 4, 2011
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Insufficient Evidence of Responsible Action to Address Delinquent Debts
- Impact of Personal Circumstances on Financial Obligations