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I wouldn't say MOST schools do it - generally very big schools do it. It helps them out logistically with room assignments, for one thing.
There are pros and cons, like with any other system; the biggest con I can think of is that students may not be aware of Greek life or interested at that point. Of course, depending on your Greek climate, the same may be true of rush held the first week of school, or girls may be able to informal later. The biggest pro is that rush does not interfere with classwork.
The biggest thing I would worry about in your case is the difficulty of making a transition like that. The school has to be prepared to get the word out to incoming students early, and the sororities have to be ready to come back early. I think the first point is especially important - rush shouldn't be limited to those girls who have known since age 5 they wanted to be Greek and managed to find the information hidden away in one of the many school mailings. If your school can handle that well, though, you'll be fine.
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Alpha Xi Delta
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