ISCR Case 14-00839.h1

Case Headnote

ISCR Case No. 14-00839.h1

grantedOct 10, 2014· Hon. Wilford H. Ross· hearing

Summary

A 35-year-old single male with a Bachelor of Arts degree was granted a security clearance under Guideline F (Financial Considerations) despite initial concerns regarding approximately $16,021 in delinquent debts. The Statement of Reasons alleged delinquency on two student loans, a $342 medical bill, and an $88 cable bill.

The applicant admitted to falling behind on student loans around 2012 but successfully completed a rehabilitation program in May 2014, making twelve monthly payments. He subsequently paid these loans directly to the lender, and credit reports confirmed all ten of his student loans were current, with three already paid off. He also provided documentation showing he paid the medical bill on May 12, 2014, and the cable bill on May 9, 2014.

The judge found that the applicant had made a good-faith effort to resolve his debts, successfully completing the student loan rehabilitation program and resolving all other delinquent debts prior to the hearing. His current financial situation was stable, and his employer provided positive evaluations of his character and work performance. Based on these mitigating factors, the security clearance was granted.

Why the Applicant Prevailed

The applicant successfully completed a rehabilitation program for his student loans, demonstrating responsible financial behavior.
All delinquent debts were resolved prior to the hearing, indicating a stable financial situation.
The applicant's character and work performance were positively evaluated by his employer, supporting his trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to Recur
AG ¶ 20(c)appliedClear Indications That the Problem Is Being Resolved or Is Under Control
AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

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 issuedApr 24, 2014
Answer filedMay 19, 2014
Hearing heldSep 9, 2014
Decision dateOct 10, 2014

Cite For

Successful Rehabilitation of Student Loans Under Guideline F
Resolution of Delinquent Debts as a Mitigating Factor
Evaluation of Character and Work Performance in Security Clearance Decisions

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant denies that he is currently delinquent on two of his student loans. He admits that he did fall behind on these loans in approximately 2012. He entered a rehabilitation program, which required him to make twelve monthly payments to the state education assistance authority of the state where he attended college. He successfully completed that process in May 2014. Subsequent to that he has been paying the affected student loans directly to the lender. Applicant has obtained ten student loans. Records from the lenders show that Applicant has paid off three of the loans, and is current with his payments for the others. The most recent credit reports in the record indicate that all of Applicant’s student loans are current.	For Applicant	Student Loan Debt	Denied	—	(d) good-faith effort to repay or otherwise resolve debts	—
1.b	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.c	Applicant admits that he was indebted for a medical bill in the amount of $342. Applicant provided documentation showing he paid this bill on May 12, 2014. $342	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	—
1.d	Applicant admits that he was indebted for a cable bill in the amount of $88. Applicant provided documentation showing he paid this bill on May 9, 2014. $88	For Applicant	Utility or Phone Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant denies that he is currently delinquent on two of his student loans. He admits that he did fall behind on these loans in approximately 2012. He entered a rehabilitation program, which required him to make twelve monthly payments to the state education assistance authority of the state where he attended college. He successfully completed that process in May 2014. Subsequent to that he has been paying the affected student loans directly to the lender. Applicant has obtained ten student loans. Records from the lenders show that Applicant has paid off three of the loans, and is current with his payments for the others. The most recent credit reports in the record indicate that all of Applicant’s student loans are current.

For Applicant

Student Loan Debt

Denied

—

(d) good-faith effort to repay or otherwise resolve debts

—

1.b

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.c

Applicant admits that he was indebted for a medical bill in the amount of $342. Applicant provided documentation showing he paid this bill on May 12, 2014.

$342

For Applicant

Medical Debt

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

—

1.d

Applicant admits that he was indebted for a cable bill in the amount of $88. Applicant provided documentation showing he paid this bill on May 9, 2014.

$88

For Applicant

Utility or Phone Debt

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

—

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Case Profile

Summary

Why the Applicant Prevailed

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION