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<title>Prepared By R.R. Donnelley Financial -- Form 8-K</title>
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<b>UNITED STATES </b></font></div>

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<b>SECURITIES AND EXCHANGE COMMISSION </b></font></div>

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<b>Washington, D.C. 20549 </b></font></div>

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<b>Form 8-K </b></font></div> <div><font Size="1">&nbsp;</font></div>

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<b>Current Report </b></font></div>

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<b>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 </b></font></div>

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<b>Date of Report (Date of earliest event reported):&nbsp;&nbsp;03/08/2007 </b></font></div>




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<b>VARSITY GROUP INC </b></font></div>

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<b>(Exact name of registrant as specified in its charter)</b></font></div>

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<b>Commission File Number:&nbsp;&nbsp;000-28977</b></font></div>

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<b>(State or other jurisdiction of</b></font>
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<div Align="center"><font Face="times New Roman" Size="2" Color="#000000"><b>(IRS Employer</b></font>
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<b>incorporation)</b></font>
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<b>Identification No.)</b></font>
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<b>1300 19th Street NW, 8th Floor Washington, DC 20036</b></font></div>


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<b>(Address of principal executive offices, including zip code)</b></font>
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<b>202.349.1242 </b></font>
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<b>(Registrant&#146;s telephone number, including area code)</b></font>
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<b>Former address: 1850 M Street, Suite 1150, NW, Washington, DC 20036 </b></font>
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<b>(Former name or former address, if changed since last report) </b></font>
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<b>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:<BR><BR>
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<b>[&nbsp;&nbsp;]&nbsp;&nbsp;
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>

[&nbsp;&nbsp;]&nbsp;&nbsp;
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>


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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Information to be included in the report</b>
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<b>Item 1.01.&nbsp;&nbsp;&nbsp;&nbsp;Entry into a Material Definitive Agreement</b></font>
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On March 8, 2007, Varsity Group (the "Company") entered into a Revolving Line of Credit Loan Agreement and Security Agreement with Bank of America, N.A. ("BOA") in which BOA will lend up to a maximum amount of $5 million to assist in funding the Company's seasonal cash requirements.  The Company may also issue letters of credit under the facility.  Borrowing ceiling levels are established monthly utilizing a borrowing base formula based on percentages of month-end inventory, receivable and investment collateral values.&nbsp;&nbsp;&nbsp; The facility is secured by substantially all of the Company's assets.&nbsp;&nbsp;&nbsp;  The agreement terminates on April 30, 2008.</font>
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<b>Item 2.03.&nbsp;&nbsp;&nbsp;&nbsp;Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant</b></font>
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See item 1.01</font>
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<b>Signature(s) </b></font>
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized. </font>
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	VARSITY GROUP INC</font>
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	Date: March 14, 2007</font>
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	By:</font>
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	/s/&nbsp;&nbsp;&nbsp;&nbsp;Jim Craig</font>
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	Jim Craig</font>
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	<div><font Face="times New Roman" Size="2" Color="#000000">CFO</font>
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{"company-data": {"conformed-name": "VARSITY GROUP INC", "cik": "0001069502", "assigned-sic": "5961", "irs-number": "541876848", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-28977", "film-number": "07693972"}, "business-address": {"street1": "1300 19TH STREET, N.W.", "street2": "SUITE 800", "city": "WASHINGTON", "state": "DC", "zip": "20036", "phone": "202-667-3400"}, "mail-address": {"street1": "1300 19TH STREET, N.W.", "street2": "SUITE 800", "city": "WASHINGTON", "state": "DC", "zip": "20036"}, "former-company": {"former-conformed-name": "VARSITYBOOKS COM INC", "date-changed": "19990921"}}
Prepared By R.R. Donnelley Financial -- Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):  03/08/2007
VARSITY GROUP INC
(Exact name of registrant as specified in its charter)
Commission File Number:  000-28977
DE
54-1876848
(State or other jurisdiction of
(IRS Employer
incorporation)
Identification No.)
1300 19th Street NW, 8th Floor Washington, DC 20036
(Address of principal executive offices, including zip code)
202.349.1242
(Registrant's telephone number, including area code)
Former address: 1850 M Street, Suite 1150, NW, Washington, DC 20036
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[  ]  
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Information to be included in the report
Item 1.01.    Entry into a Material Definitive Agreement
On March 8, 2007, Varsity Group (the "Company") entered into a Revolving Line of Credit Loan Agreement and Security Agreement with Bank of America, N.A. ("BOA") in which BOA will lend up to a maximum amount of $5 million to assist in funding the Company's seasonal cash requirements.  The Company may also issue letters of credit under the facility.  Borrowing ceiling levels are established monthly utilizing a borrowing base formula based on percentages of month-end inventory, receivable and investment collateral values.    The facility is secured by substantially all of the Company's assets.     The agreement terminates on April 30, 2008.
Item 2.03.    Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
See item 1.01
Signature(s)
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
VARSITY GROUP INC
Date: March 14, 2007
By:
/s/    Jim Craig
Jim Craig
CFO