"Seifer" is actually a real name, though, pronounced "Sigh-fur." It's German. Considering that there are crosses on his jacket's upper sleeves, just as there were crosses on the Tuetonic Knight's mantles that would be over their upper arms when the mantles were draped around them, I'm going to assume it's not unrelated.
In FFVIII Seifer has 2 meanings the first is the above the 2nd is a play on "Cipher" (Sigh-fer) which basically means "Zero" or "No influence or Value" It might be bacause (until Sorcery) Seifer feels like a "Zero" especially that scene where he fails the exam (You can tell by looking at him that he took it)