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Anyone Knowledgeable Regarding Credit, Credit/History And Its Affect On Military Security Clearances?


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I have student loans 4 months past due, currently working on deferment/forbearance/forgiveness/anything better than what I am on now.

 

My clearance is still just fine, but is there a certain point that I should be worried about potentially the negative effect on my clearance from my past due student loans?

 

Thanks!

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18 hours ago, ChoochMooch said:

I have student loans 4 months past due, currently working on deferment/forbearance/forgiveness/anything better than what I am on now.

 

My clearance is still just fine, but is there a certain point that I should be worried about potentially the negative effect on my clearance from my past due student loans?

 

Thanks!

From what I've seen over the years, they are more concerned with how and why things happened rather than the actual fact that issues exist.  

 

 

 

 

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19 minutes ago, ChoochMooch said:

You know what, I never thought of it like that, but you are probably on to something.

 

 

 

The worst thing -- absolutely the worst --you can do is lie about things if they ask you about it.  Members of my command have had issues and retained their clearances as long as they told the truth and had a plan to get out of financial problems.  If your issue is simply a few student loans with other good accounts reporting, they may not even question you about it.

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  • 3 months later...

Always best to self report to your security manager. Explain what is happening and why. If your command gets a letter of indebtedness from a creditor that can mean bad news for you and your clearance. I would start by calling whoever is handling your student loans and trying to work something out with them. You will want to include that info when you report it to your security manager.

Provided you have a valid reason (not buying a new BMW) for being behind in payments you should be fine. 

Finally, it also depends on the level of your clearance and the amount of your debt. 

 

Good luck and YMMV.

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7 hours ago, rockyrock said:

Always best to self report to your security manager. Explain what is happening and why. If your command gets a letter of indebtedness from a creditor that can mean bad news for you and your clearance. I would start by calling whoever is handling your student loans and trying to work something out with them. You will want to include that info when you report it to your security manager.

Provided you have a valid reason (not buying a new BMW) for being behind in payments you should be fine. 

Finally, it also depends on the level of your clearance and the amount of your debt. 

 

Good luck and YMMV.

 

Self-reporting is always a good idea, but I'm not sure about worrying about a letter of indebtedness.   I don't recall ever seeing any letters of indebtedness in any of my commands during the last 20 years.  

 

DoD policy has been for a long, long time that commands never entertain any correspondence regarding civilian debt.  Creditors know that.  They also know that federal law prohibits 3rd party contact initiated by a creditor.  While this does not include original creditors, even then there is substantial legal risk.

 

Another issue is state law.  Military installations are required by DoD regulations to follow the more stringent of federal law or state law to which they're subject.  For example, on installations in California, the state RFDCPA mirrors the FDCPA, but also applies to original creditors.  

 

The time to worry about security clearances is when there is a tax offset, income execution (quite rare for military personnel), law enforcement involvement, civil lawsuit, on-base auto repo, periodic security audits or a nut-job spouse.  

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  • 1 year later...

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