This literature review examines the integration of Metaverse technology, building on earlier virtual reality explorations, into higher education, focusing on virtual classrooms and collaborative learning. Reviewing research from 2015 to 2025 via Scopus, Emerald, and Google Scholar, we trace the evolution from experimental VR to the broader Metaverse concept. We analyze how these technologies impact educational experiences, their benefits, and persistent challenges. Key themes include the shift from isolated VR use to integrated immersive environments, the need for pedagogical transformation, and unique collaborative dynamics. Case studies from institutions like ASU, UI, SJSU (early adoption) and MSU, William & Mary, GSU (recent examples) illustrate these trends. While Metaverse environments enhance engagement, offer immersive experiences, and overcome physical limits, they face challenges in technical requirements, accessibility, cost, and equity, echoing earlier VR difficulties. Successful implementation requires a strategic approach balancing innovation with evidence, addressing infrastructure, supporting faculty, and prioritizing inclusive design. Future directions include technological advancements resolving limitations, research establishing clearer evidence of educational effectiveness, and developing sustainable, equitable implementation models.