KEYWORD:  Financial

DIGEST: Applicant had three delinquent student-loan accounts totaling approximately $52,406. When he left active duty in July 2017, he was living on a fixed income from the reserves and his Veterans Affairs disability. He stopped paying on his loans, and until September 2020, he did not make any attempts to pay them. In June 2018, he characterized his finances as not currently in a good state. He claimed to be so embarrassed by having delinquent accounts that he had not told his wife of their financial situation – a potential trigger to blackmail. He planned to tell her “soon” and intended to seek financial counseling. It remains unclear if he did either. Three months before the Statement of Reasons was issued, but approximately two and one-half years after he was questioned by a U.S. Office of Personnel Management investigator, and approximately seven months after he was issued a set of interrogatories regarding his delinquent student-loan accounts, Applicant finally addressed those delinquent accounts. Because he failed to offer sufficient information and commentary regarding his current finances; the reason why he failed to contact his creditors for such a lengthy period; the reason why he failed to make even minimum payments, especially when he had a monthly remainder of $1,750 as far back as March 2020, and possibly even before that time; as well as the source of the funds he used to resolve the three delinquent debts, there are lingering questions. Applicant’s actions or inaction continue to cast doubt on his current reliability, trustworthiness, and good judgment. Eligibility is denied. 

CASE NO: 20-01883.h1

DATE: 05/17/2021