You are correct on discontinuing of telescopic fares. There is also no break journey.
I have travelled through bihar UP, MP.. There is no reservation system. Anybody and everybody can get into any compartment and occupy any seat, any class..
Maybe the Harvard students, should have travelled by train to Bihar.
Nowadays, a lot of people are travelling for getting employent religious tourism and to eke out a living, especially from Bihar, Kerala, West Bengal say to Mumbai and Delhi. These states are politically still backward as there is no much private enterprise.