I actually think that is a really, really bad thing to do in a university. That is because unversities are full of seniority and dependency relationships, and in an unequal relationship informal conflict resolution puts the weaker party at a disadvantage.
Solving things in private is appropriate in a group of peers, say a small company among friends, or a family, but whenever there is an inequality in power, teacher/student, manager/employee, it is important to not handle things in private. It's one of the reasons universities tend to be so scandal ridden, and why you have these stories of say, sexually abusive teachers who somehow are able to brush it under the carpet for decades.
It's also the reason why the military tends to be hyper-formal when it comes to complaints, because it is so hierarchical. Solving things privately when one party exercises authority over the other will inevitably produce some very screwed up results.