Some 200 km of pipe had already been installed.
Calgary-based TC Energy Corp halted work on the project earlier on Wednesday.
TC Energy says it will offset the project's greenhouse gas emissions as documents suggest Joe Biden is planning to cancel it.
The original permit didn't adequately take into account endangered species, a judge has ruled.
The announcement comes as Canadian bitumen sells for below $5 a barrel.
The students want McGill University to divest from TC Energy, whose Coastal GasLink pipeline has triggered a national protest movement.
The cause of the rupture has not been disclosed.