‘Student-athlete’ is the American term for a university student who not only studies, but is also an official athlete on one of the university’s ‘varsity’ sports teams during his or her studies. ‘Varsity’ stands for the official sports team; in fact, you can also play recreational sports at a university.
Every student-athlete is brought in (scouted) by a college coach to play against other teams from other universities during games and tournaments. Often students are compensated for this in the form of athletic scholarships (scholarships), so they have less (or no) expenses for tuition, lodging and meals.
Student-athletes often have an unwritten “special” status in college and are seen as unique students. It is therefore also quite normal in America that you are actually recognized at school as a ‘student-athlete’ by other students at the university. A kind of VIP status, in other words 😉