Source : Webster's Revised Unabridged Dictionary (1913)

Varsity \Var"si*ty\, n.
   Colloq. contr. of {University}.

Source : WordNet®

varsity
     n 1: a British abbreviation of `university'; usually refers to
          Oxford University or Cambridge University
     2: a team representing a college or university [syn: {first
        team}]