CLEMSON — Three days into fall semester, Clemson University administrators have already helped about 700 students navigate financial aid drama.

Problems have ranged from lenders shutting down to clunky electronic applications and correspondence.

Clemson Director of Financial Aid Marvin Carmichael found out Aug. 15 that Education Finance Partners (EFP), the fourth-largest provider of private students loans had shuttered its academic operations. Last year, the San Francisco-based company provided loans for about 200 Clemson students.

“Thirty-five students who had been told they had loans (through EFP) came to campus (thinking)? they had everything taken care of,” Carmichael said. “EFP had indicated they had mailed everybody a statement indicating they would no longer offer student loans, but we know a lot of students who did not get that.”

Carmichael said Clemson’s financial aid department is counseling all Clemson students who planned on using EFP funds for fall tuition.

“We’re seeing them on an individual basis all week and working with them, asking them to consider different lenders. There are a number of these programs,” Carmichael said.

Compared to national averages (3.5 percent to 5.3 percent), Clemson students rarely default on student loans (less than 1 percent), a characteristic which has already netted the university inquiries from other lenders, Carmichael said. Private Academic Loans LLC, based in Boston, e-mailed Carmichael on Thursday looking to “pick up the slack” left by EFP. However, Clemson is still considering the overture.

“We’re not going to encourage our students to apply to loans we don’t know about, without us doing diligent research,” Carmichael said. “Just because you send an e-mail doesn’t mean we are going to provide your information to Clemson students.”

This is not the first time EFP has put Clemson in the headlines. In March 2007, New York Attorney General Andrew Cuomo filed a suit against EFP over deceptive practices in the company’s student loan business. Cuomo claimed EFP made paybacks to universities who pushed their product. Along with many schools, Clemson worked with EFP at the time.

Cuomo’s lawsuit launched the first national investigation of the college loan industry, an $85-billion-per-year business. After Cuomo filed against EFP, Clemson performed an internal audit and hired a consultant to examine university dealings with the lender. The consultant found nothing unscrupulous. However, Clemson terminated its relationship with the EFP in July 2007.

Under federal regulations inspired by the 2007 EFP investigation, a student must first chose a lender — without a university-made suggestion — before a loan can be processed. Historically, Clemson recommended the South Carolina Student Loan Corporation (SCSLC) to it collegians. Carmichael said the new provision has resulted in more headaches for students.

“Everything worked smooth and quick with the SCSLC. Now, there’ve been some electronic communications problems with multiple lenders. These have created students waiting in line for their loans to be finalized. The students no longer apply through Clemson, the go straight to the banks.”

According to Carmichael, Clemson has worked with about 700 students this semester to resolve electronic sludge.

“We’ve made temporary arrangements until their loans are finalized. They’re in school and not going to lose their schedule,” Carmichael said. “We don’t know how many people (with student loan issues) are out there. Because they no longer apply through Clemson, it makes for a very complex environment compared to what it used to be.”

About 90 percent of Clemson students will utilize some form of financial aid this fall.