I recently got my Swedish citizenship, and it was confusing at first whether I was still entitled to it or not. There may be rules on the age limit the children have to be below before applying for citizenship... for Sweden I think it's 18 or something close to that. I would recommend phoning the embassy in Ottawa (consulates sometimes are limited in there knowledge) and explaining the issue. Yeah they could take advantage of the post-secondary school system in Europe should they choose.
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