Summary
A 40-year-old project manager for a defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons detailed seven charged-off student loan balances, totaling approximately $92,444. These included individual balances of $21,903, $11,048, $20,024, $11,506, $17,107, $3,599, and $7,257.
The judge applied Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c), while also considering Mitigating Conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e).
Ultimately, the clearance was denied because the applicant admitted to all allegations but failed to provide evidence of a repayment plan or financial counseling. The financial issues, which have persisted since 2001, raised concerns about his reliability and judgment. The applicant did not demonstrate a good-faith effort to resolve his debts or provide supporting documentation.
Why the Applicant Was Denied
- The applicant admitted to all allegations of financial difficulties and failed to provide evidence of a repayment plan or financial counseling.
- The applicant's financial issues have persisted since 2001, raising concerns about his reliability and judgment.
- The applicant did not demonstrate a good-faith effort to resolve his debts or provide documentation to support his claims.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial difficulties have been ongoing since 2001.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide evidence of circumstances beyond his control affecting his finances.
- AG ¶ 20(c)rejectedReceived or Receiving Counseling for the ProblemThere is no evidence that the applicant received financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate any good-faith efforts to resolve his debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the DebtThe applicant did not provide evidence to dispute the legitimacy of his debts.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedJul 11, 2014
- Answer filedJul 30, 2014Applicant elected to proceed without a hearing.
- Hearing held—Case decided on the written record.
- Decision dateJun 16, 2015
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Importance of Providing Evidence of Debt Repayment Plans
- Impact of Long-standing Financial Issues on Security Clearance Eligibility