I'm a current applicant for Navy HPSP and I was wondering how bad credit could affect me. I don't have a history of bankruptcy or gambling or anything, but I do have a history of defaulting on credit loans due to poor financial situations (probably should have been on welfare instead but that boat has long passed). All in all I would say it totals to maybe 3-4k. Is this grounds for not getting the HPSP?
Credit check for HPSP
- Thread starter echo87
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Yes?...I mean just submit your application, be honest, and see what happens.
I think one of the concerns of bad credit is that it'll be easier for the Russians and Chinese to bribe you to become one of their spies...or as my mandatory online training calls it...INSIDER THREATS
I think one of the concerns of bad credit is that it'll be easier for the Russians and Chinese to bribe you to become one of their spies...or as my mandatory online training calls it...INSIDER THREATS
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You can't get certain levels of security clearance with bad credit, as you are viewed as both morally suspect and a potential security threat due to bribes. As long as your debts are settled and no longer in default, you should be fine, but if you still have outstanding debts with creditors after you, you might not pass.
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Thanks for the chart. I understand debts represent a loose end on the integrity front, but I was hoping I could get more info on the application process. From my digging, I've seen hearsay that a "security office" will get back to you after an actual decision on the HPSP and say that clearance could be denied if debts are not resolved, or in the process of being resolved.
It seems, however, such knowledge would require someone actually involved/familiar with the bureaucratic process.
It seems, however, such knowledge would require someone actually involved/familiar with the bureaucratic process.
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95% of the reason for denial of a clearance for HPSP students is bad credit. The other 5% are citizenship and other integrity issues (simply lying on the application for the clearance).
In reality, the process is that you apply for the clearance. Once you come up as a risk, the security office will attempt you contact you to answer for the credit issue, and see what steps you are taking to rectify the situation. They may suspend your clearance, or deny it all together. However, while this is playing out, you are in school, HPSP is paying for your tuition and stipend, books and equipment. For the Army, the HPSP office normally isn't notified of your lack of clearance until the second ADT. Why so long? It can take 16-18 months for a good clearance to be issued. The first ADT is either BOLC or school within 9 months of the start of the scholarship. Further, students ignore the Security Office and the Security Office is not authorized to "share" personal information with any other entity. So the HPSP office will not find out until it's time for the second ADT - two years down the road.
What happens next? Either the student is able to prove that he is taking steps to rectify the bad debt, or the clearance is denied. Once the clearance is denied, you are not eligible for the scholarship and now owe the Army all the money spent on your behalf. Think about that for a minute. You owe the world so much money and you are in default and can't be in the Army, then on top of that, you now owe the Army for two years of school, stipend, 20K bonus, books, and equipment. And, because you have bad credit, you can't get loans for the last two years of school so you have to quit. And, by-the-way the Government debt cannot be discharged through bankruptcy and must be paid back within 10 years.
Best advice is to pay your debts. Some effort, as much as you can afford each month CONSISTENTLY. Keep up your payment plan. The security office wants to see a serious effort is being made over the course of a year or more...
In reality, the process is that you apply for the clearance. Once you come up as a risk, the security office will attempt you contact you to answer for the credit issue, and see what steps you are taking to rectify the situation. They may suspend your clearance, or deny it all together. However, while this is playing out, you are in school, HPSP is paying for your tuition and stipend, books and equipment. For the Army, the HPSP office normally isn't notified of your lack of clearance until the second ADT. Why so long? It can take 16-18 months for a good clearance to be issued. The first ADT is either BOLC or school within 9 months of the start of the scholarship. Further, students ignore the Security Office and the Security Office is not authorized to "share" personal information with any other entity. So the HPSP office will not find out until it's time for the second ADT - two years down the road.
What happens next? Either the student is able to prove that he is taking steps to rectify the bad debt, or the clearance is denied. Once the clearance is denied, you are not eligible for the scholarship and now owe the Army all the money spent on your behalf. Think about that for a minute. You owe the world so much money and you are in default and can't be in the Army, then on top of that, you now owe the Army for two years of school, stipend, 20K bonus, books, and equipment. And, because you have bad credit, you can't get loans for the last two years of school so you have to quit. And, by-the-way the Government debt cannot be discharged through bankruptcy and must be paid back within 10 years.
Best advice is to pay your debts. Some effort, as much as you can afford each month CONSISTENTLY. Keep up your payment plan. The security office wants to see a serious effort is being made over the course of a year or more...
Thank you. Exactly the details I was looking for, and makes me feel better because I am indeed working to clear the debts and should do so within a few months.
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MadJack- your chart doesn't apply here. The OP isn't enlisting, they are commissioning and from my understanding, all commissioned officers (regardless of branch) require a security clearance, which requires a credit check.
Apply and see what happens. If you have outstanding debt and are in default you will in all likelihood not get security clearance. Now I do not know if the scholarship is granted after the offer contingent secret level security clearance. I personally do not remember applying for security clearance when I initially applied for HPSP, this was in 2001. However I remember in 2012 my security clearance expired and had to reapply for the clearance so I suppose somewhere along my application for HPSP I did apply.
