Private student loan provider Education Finance Partners will no longer offer student loans and students with EFP loans will be required to find a new lender, according to Drexel and EFP.

Drexel University’s Office of Financial Aid sent a letter to the affected students Aug 18 informing them they would need to find a new lender.

“EFP will not be able to process any of the loan applications submitted,” read the letter from Drexel.

For the 2008-09 academic year, 56 Drexel students had already been approved for loans through EFP said Melissa Englund, assistant vice president for enrollment planning and retention services at Drexel.

Englund said Drexel suggests students visit http://www.simpletuition.com/drexel/home for help finding a new loan. They should also contact the Financial Aid Office at 215-895-2537, she added.

EFP is the company that was cited by NY Attorney General Andrew Cuomo in 2007 for having a “revenue sharing agreement” with Drexel. The agreement led to a threat of a law suit against the University.

EFP paid a 2.5 million dollar settlement as a result of the AG investigation.

A spokesman for EFP could not be reached at the time of this post.