Security Clearances Revoked for Excessive Debt
by Wayne Olson
October 28, 2006

According to Associated Press, thousands of U.S. troops are being disqualified from overseas duty because they are considered security risks.

In some cases disqualification is owing to criminal activity, uncertain allegiance, or ill health. An increasingly common reason for lost security clearance is debt. Depending on the military branch, when service members’ debt payments are 30 to 40 percent of their salary, security clearances are revoked.

The concern is that a soldier with extreme debt might sell secrets or equipment to the enemy. Also, focus on meeting financial obligations, such as making the next house payment, could be a dangerous distraction for someone facing combat. Data obtained by AP from the Navy, Marines, and Air Force revealed an alarming trend. From 2002 to 2005, the number of security clearances canceled for financial reasons jumped ninefold to 2,654. Data from the Army was not obtainable.

Why does this growing problem with debt exist? It is not a deliberate attempt to stay out of harm’s way, say military officials. It is attributed to other factors, a key one being easy access to payday lenders that charge very high interest rates.

Ironically, neither a lack of financial smarts nor the accrual of massive debt have affected the security clearances of politicians serving in Washington — who piled an additional $2 trillion on the National Debt from fiscal year 2002 to 2005. The American electorate might ponder whether some security clearances should be revoked on election day. An old saying goes, “What’s good for the goose is good for the gander.”