An Etymological Dictionary of the German Language/Annotated/Bursche
Bursche, masculine, ‘fellow, apprentice, student,’ properly identical with Modern High German Börse, from Middle High German burse, feminine, ‘purse, money-bag, society, house belonging to a society, especially to a students' society.’ From the last meaning, prevalent in the 15th century, the Modern High German acceptation of Bursche (s after r became sch, as in Arsch, Hirsch) was developed, just as perhaps Frauenzimmer from Frauengemach; compare the existing phrase altes Haus among students, Anglo-Saxon geogoð. ‘a company of young people,’ similar to English youth.