The migration of Nepalese students for higher education abroad has increased substantially, creating both opportunities and economic challenges for Nepal. Each year, tens of thousands leave for destinations such as the United States, Australia, Canada, and the United Kingdom, causing considerable financial outflows and loss of skilled human capital. This study reviews government and academic data to assess economic effects along five dimensions: foreign exchange outflow, opportunity costs, reduced domestic investment, diminished remittance contributions, and long-term brain drain. Annually, foreign education costs exceed USD 1 billion, pressuring foreign exchange reserves and weakening the currency. The loss of skilled professionals constrains innovation and development. Despite these challenges, benefits include improved skills, global exposure, and diaspora support. Recommendations include bolstering domestic higher education, promoting return migration, channeling remittances into education and entrepreneurship, and broadened access to online international programs. While individuals gain from studying abroad, Nepal faces substantial economic challenges requiring strategic, long-term policies to retain and leverage human capital.