Of the 26 settlements, 23 are signed and three have an agreement principle, with final documentation expected within the next few weeks, the university said in a release.
President Rodney Erickson said university officials hoped the settlements are "another step forward in the healing process for those hurt by Mr. Sandusky, and another step forward for Penn State."
"We cannot undo what has been done," Erickson said, "but we can and must do everything possible to learn from this and ensure it never happens again at Penn State."
Sandusky is serving 30 to 60 years in prison after being convicted of 45 counts of child sexual abuse last year, which he has appealed.
The scandal led to the firing of legendary head football Coach Joe Paterno, who died five months later.
Ohio crash that killed two caught on camera [VIDEO]
Video of Victoria’s Secret models trying to 'twerk' hits Instagram