I can think of some better ways to phrase this. One idea might be: "The students stood on all but one edge of the stage in a U-shape so that all of them could face the door." You could also say: "The students stood in a U-shape, lined up on all the stage's edges except for the outer edge, all the students facing the door."
A good way to do descriptions like these is by making sure that you separate different details with commas so that it's not all one confusing block. It is also important to add word variety to your descriptions because it also helps differentiate details.
One note I will make about your original idea for phrasing is that saying "the students stood along the sides and far side of the stage" is confusing. The far side counts as one of the sides, right? That's why in my descriptions I used the word "edge." It's easier to describe the different edges of a stage than different sides of a rectangle because the word "sides" can be confusing in certain contexts (when you talk about the sides of a stage, I immediately think left and right, not left, right, front, and back).