Saudi state television later reported that the Education Ministry was coming up with an "urgent plan" to move thousands of Saudi scholarship students out of Canadian schools to take classes in other countries.
"We continue to encourage the government of Saudi Arabia to ensure all are afforded due process and to provide information on the charges and case status of legal actions against activists", she said.
Canada on Monday refused to back down in its defence of human rights after Saudi Arabia froze new trade and investment and expelled the Canadian ambassador in retaliation for Ottawa's call to free arrested Saudi civil society activists, Reuters reports.
Castellanos has worked in Canadian universities for 20 years and also said she "has never seen something like this". "They will not be travelling home with a degree, or with a master's degree or a PhD".
Rex Brynen, a political science professor at McGill University, said the armoured vehicles contract was a big deal for Canada, which is why the Liberals - who inherited it from their Tory predecessors - agreed to uphold it despite clear human rights concerns.
It says there were 327 students from Saudi Arabia at McGill during the 2017-2018 academic year.
"We will provide those students with appropriate support as needed", he stated in an email.
With more than 200 registered at Dalhousie alone, the school told CTV News in a statement that "it values its Saudi students and their contributions to our community". Freedland urged the Saudi government to "immediately release them".
Ms Badawi was given the US International Women of Courage Award in 2012 and is known for challenging Saudi Arabia's male guardianship system.
A tweet from Saudia announced its routes operating between the two countries would cease to function in a matter of days, marking the latest escalation in the spat that erupted over the weekend.
Travel to the country will also be affected in light of an announcement from Saudia Airlines on Tuesday that it will suspend flights to and from Canada starting August 13.
Castellanos said that would make it even more hard for the students to leave.
The State Department sought for a second day to avoid inflaming a spiraling diplomatic row between Saudi Arabia and Canada Tuesday, calling on both sides to sort out their differences over a delicate human rights dispute.