Summary
A 28-year-old defense contractor with a master's degree was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited 32 delinquent debts totaling $85,291. These included seven medical bills totaling $17,924, an additional $93 medical bill, and $2,118 in other medical bills. Also noted were a $727 charged-off account, collection accounts for $51 and $111, and another for $374. The applicant also had 20 student loans totaling $65,348 and overdue state income taxes for $756.
Disqualifying conditions under Guideline F were raised, specifically AG ¶ 19(a) and AG ¶ 19(c). However, the applicant demonstrated significant mitigating factors. He entered into repayment agreements for his debts and sought financial counseling. The applicant also confirmed he had not incurred new delinquent debts since starting his current job and was living within his means.
The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d). The decision to grant the clearance was based on the applicant's demonstrated commitment to resolving his financial issues, his proactive approach to debt management, and his credible testimony regarding his intentions.
Why the Applicant Prevailed
- The applicant demonstrated a commitment to resolving his financial issues through repayment agreements and financial counseling.
- He has not incurred new delinquent debts since obtaining his current job and is living within his means.
- The applicant's proactive approach to managing his debts and his credible testimony about his intentions contributed to the favorable decision.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“A security clearance adjudication is not a debt collection procedure. Instead, it is a procedure designed to evaluate an applicant’s judgment, reliability, and trustworthiness.”
Procedural Posture
- SOR issuedJul 30, 2013
- Answer filedAug 23, 2013
- Hearing heldNov 20, 2013
- Decision dateDec 13, 2013
Cite For
- Mitigating Conditions Under Guideline F for Financial Considerations
- Importance of Demonstrating a Plan to Resolve Financial Issues
- Consideration of the Whole-person Concept in Security Clearance Decisions