The Student and Exchange Visitor Program monitors international students for INS and universities by constructing an extensive database on their backgrounds and personal information.
The system would also allow the monitoring of students from "rogue states" -- nations unfriendly to the United States -- to prevent possible terrorist acts.
"It's a customer service program," said INS spokeswoman Ayleen Schmidt, adding that she expects the system to be used nationwide in 2003.
Under the Illegal Immigration Reform and Immigration Responsibility Act of 1996, a program for tracking and recording information on international students was introduced at 21 institutions, including Duke University.
A report by the National Commission on Terrorism last June stated that a small minority of international students might exploit their student status to support terrorist activity and should be monitored. The commission testified before the U.S. Senate Select Committee on Intelligence last year.
The report states that the government lacks the ability to monitor the immigration status of the thousands of students from rogue nations who are studying in the United States.
"The commission's main concern was that a lot of information and technical training would become available to people studying in the U.S.," said Stephen Aftergood, a senior research analyst at the Federation of American Scientists, a Washington, D.C.-based independent think tank.
"The government should think twice about students such as Libyans and Iraqis studying nuclear energy," he said. "Someone may get a visa to study art history and then change their major to aeronautical engineering, and the U.S. government may not know about it."
There has been only one case where a former international student was linked to terrorism.