An Etymological Dictionary of the German Language/Bursche
Bursche, m., ‘fellow, apprentice, student,’ properly identical with ModHG. Börse, from MidHG. burse, f., ‘purse, money-bag, society, house belonging to a society, especially to a students' society.’ From the last meaning, prevalent in the 15th cent., the ModHG. acceptation of Bursche (s after r became sch, as in Arsch, Hirsch) was developed, just as perhaps Frauenzimmer from Frauengemach; comp. the existing phrase altes Haus among students, AS. geogoð. ‘a company of young people,’ similar to E. youth.