"The United States Immigration and Customs Enforcement has begun the process of adjusting the status and transfer of eligible students on a case by case basis," External Affairs Minister S M Krishna told the Lok Sabha during the Question Hour.
He said around 700 students were being considered for reinstatement of their status.
At the same time, Krishna also wanted students to exercise caution and verify the antecedents of foreign universities while applying for higher studies abroad.
"It is for the students themselves to make verification with their friends and on the Web (internet)," the minister said adding that the government was also monitoring various educational institutions in the US.
Krishna said the government`s primary concern was welfare of the affected Indian students and to ensure that their academic career was not jeopardised due to the closure of the Tri-Valley University for alleged fraudulent practices.
He said the government expected the US administration to take steps to prevent such universities from exploiting foreign students.
Krishna said he had raised the issue of the plight of the students of the Tri-Valley University during his meeting with US Secretary of State Hillary Clinton.