Summary
A 40-year-old acceptance technician for a defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited approximately $20,000 in charged-off or collection accounts and $47,000 in student loan obligations. At one point, the applicant was behind on student loan payments, with some accounts charged off, and multiple delinquent accounts remained unpaid, some not recently incurred. These issues raised Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c).
However, the decision applied Mitigating Conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d). The applicant demonstrated responsible financial management by enrolling in a debt management program that encompassed all the Statement of Reasons debt. He also consistently maintained current payments on his rent, utilities, and vehicle loans.
Ultimately, the applicant's commitment to resolving his financial issues through employment and financial counseling led to the granting of his security clearance.
Why the Applicant Prevailed
- The applicant enrolled in a debt management program that included all delinquent debts.
- He maintained current payments on his rent, utilities, and vehicle loans.
- The applicant demonstrated a commitment to resolving his financial issues through employment and financial counseling.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions 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 And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“An applicant is not required to establish that he has paid off each and every debt listed in the SOR. All that is required is for him to demonstrate he has established a plan to resolve his delinquent debt and has taken significant action to implement that plan.”
Procedural Posture
- SOR issuedJun 4, 2014
- Answer filedJun 30, 2014
- Hearing heldOct 20, 2014
- Decision dateMar 12, 2015
Cite For
- Resolution of Financial Issues Under Guideline F
- Importance of Demonstrating a Plan for Debt Management
- Consideration of Mitigating Circumstances Related to Financial Difficulties