This is correct. It is known as the Mensur and is practiced by Burschenschaften (far right frats) in Germany and Austria until this day. They get up in historical uniforms , bring out the rapiers and cut up each others' faces as a rite of initiation. In return for conforming to the incredibly chuddy environment, the students get cheap or even free boarding in dorms that are palatial mansions in prohibitively expensive student towns and become part of vast good ole boy networks while developing a serious alcohol problem and singing nazi marching tunes.