International student enrolment has surged globally, transforming higher education systems worldwide. In Canada, this growth has not only transformed post-secondary institutions but also recalibrated the immigration system, with international students positioned as prime candidates for permanent residency after graduation. Against this backdrop, this study investigates how former international students (FIS) graduating from publicly funded Canadian universities navigate migration decisions. Using a grounded theory approach, it explores how privilege and precarity shape the aspirations and capabilities of FIS, influencing their migration experiences. Findings question Canada’s image as an unequivocally attractive destination, emphasizing the evolving, situational aspects of migration choices. Systemic barriers, including employment challenges and inconsistent policies, complicate desires to stay. We underscore the need for integrated policies connecting education, immigration, and labour markets and offer recommendations to retain and integrate international student talent.