HPSP and adverse credit history

[786760]

Hey all,

So couldn't really find a good answer on this, so I am here seeking for advice. I will be applying to HPSP; financially makes sense, I want to serve, and significant other trusts my decision to do it. What unsettles me a little bit is that about a year and half ago I had delinquent loans of a 120 days on my credit report, (from undergraduate student loans) but never on default though. Since then I have taken care of the issues (the loans are all current under IBR) and my credit score (FICO) is fair. God-willing my first day of D1 will be sometime during August 2018, so between now and then (2 years) I plan on working while going under IBR (income based repayment) plan to make payments. Now my questions are:

1. I made a huge irresponsible mistake in the past, but now is this going to haunt me when I apply for HPSP 3 years later even if my loans are current and I am making payments on them for the last ~6 months? Will I pass the security clearance required with an adverse credit history even when my credit to date (assuming August 2018) is fair-to-good by then?

2. I am currently qualified for $0 a month under a IBR plan until September 2017, (hence why I mentioned ~6 months in question #1) and like I said I plan on working for the next two years, so is it my best interest in order to pass the security clearance to start making actual payments before September 2017 if I can afford them?

3. Based on the answer to question #2, I could still be anywhere between 19K-22k in debt from undergraduate student loans by the time I apply for HPSP. Being that by then I am making payments, current in all loans, and credit is fair-to-good, would a debt of this amount (19K-22k by time of HPSP application) is still hanging above my head cause me to fail the security clearance?

Post was longer than I thought would be (typical me) I have trouble being concise when new things pop in my head as I write, example is this .

- Many thanks in advance to anyone able to help me answer these questions, I appreciate your time very much.

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[USArmyHPSP]

Your credit will have nothing to do with selection for HPSP. It will have a whole lot to do with your ability to obtain a security clearance - which you must have to be an officer in the Armed Forces. It has been my experience that the number one reason for denial of a clearance is bad debt. It is also my experience that as long as you can prove a track record of making the bad debt good (a year or two of paying all bills on time, making an effort to clear past due bills without bankruptcy) that you can still get a clearance.

 

[786760]

Your credit will have nothing to do with selection for HPSP. It will have a whole lot to do with your ability to obtain a security clearance - which you must have to be an officer in the Armed Forces. It has been my experience that the number one reason for denial of a clearance is bad debt. It is also my experience that as long as you can prove a track record of making the bad debt good (a year or two of paying all bills on time, making an effort to clear past due bills without bankruptcy) that you can still get a clearance.

So when does the bolded come into play then? D1, 2, 3, 4, or once you attempt to go into active duty to repay your four years? It seems crazy to think that you wouldn't get to know well into a couple of years if not all of your dental school education only to find out that you did not obtain security clearance and you now owe the military all their money back and cannot serve as a dental officer to repay them back. Scary,

 

[USArmyHPSP]

The Army HPSP will be notified when the student attempts a second ADT that there is a problem with the clearance. The security office says that as soon as there is a problem, they attempt to contact the student and that most times their attempts to rectify the situation are ignored.

 

[786760]

The Army HPSP will be notified when the student attempts a second ADT that there is a problem with the clearance. The security office says that as soon as there is a problem, they attempt to contact the student and that most times their attempts to rectify the situation are ignored.

Sorry for the ignorance, but what exactly does ADT stand for? I'm guessing it refers to a second year dental student. If so, what I understand is the earliest you can be notified of a problem is when you start your second year of dental school.

At that point could you theoretically "always pass" the security clearance when notified of a problem if you fully cooperate and make the attempt to rectify what the problem is? Or are there times where the problem regardless of what you do on your end makes you fail the security clearance? Credit wise, I'm guessing if they find something like bankruptcy, default loans, collections, then you will fail it. But for my case, something like in my scenario (120 days delinquent loans totaling up to 19k-22k) could that "always" be rectifiable to pass the clearance? Should I even worry If I plan on demonstrating these loans being current for the last 3 years?

-Thanks again for your feedback.

 

[vellnueve]

ADT is your 45 day period of active duty each year. That's the next time you actually pop up on anyone's radar.

 

[ktran17]

When you are in the process of being sworn in as an officer, one of the in processing procedures include obtaining a secret level clearance. If you're not able to do so, you will probably be denied the scholarship.

Obtaining a clearance is one of many requirements including but not limited to a background check, citizenship , meps etc

 

[vellnueve]

When you are in the process of being sworn in as an officer, one of the in processing procedures include obtaining a secret level clearance. If you're not able to do so, you will probably be denied the scholarship.

Obtaining a clearance is one of many requirements including but not limited to a background check, citizenship , meps etc

Some clearances may not be finalized until after you commission and start, because there's a huge backlog. Interim clearances can be granted but if after final review you are denied, then you will lose it.

 

[ktran17]

Agreed. Although not fully explained in my post, most clearances do not finalize until much later. The quote I obtained from HRC was anywhere from a couple weeks to more than 6 months.

Nonetheless, it would be behoove anyone thinking of HPSP to do everything in their power to get that clearance. It would really suck to find out 9 months into the scholarship that you were denied and have to payback that money. Payback terms are not very favorable

 

[Incis0r]

Nonetheless, it would be behoove anyone thinking of HPSP to do everything in their power to get that clearance. It would really suck to find out 9 months into the scholarship that you were denied and have to payback that money. Payback terms are not very favorable

True.