New Law Protects Cleared Military Personnel from Debt

The Military Lending Act, which reportedly took effect October 1, protects military personnel who hold security clearances from losing those clearances as a result of taking on debt from high-interest loans. The law limits interest charged on such loans. ClearedCommunity.com first noted last June that military personnel who had accumulated too much debt were losing their clearances. Under Adjudication Guidelines, security clearance-granting authorities may question whether persons with unreasonable amounts of debt are more susceptible to bribes and more likely to compromise classified information, and may deny clearance.

Filed Under: Reform, Laws & Regulations, Adjudication