The university confirmed the settlement Monday.
"We hope this is another step forward in the healing process for those hurt by Mr. Sandusky, and another step forward for Penn State," University President Rodney Erickson said in a statement issued by the university on Monday.
"We cannot undo what has been done, but we can and must do everything possible to learn from this and ensure it never happens again at Penn State."
Twenty-three of the deals are signed, while three others are "agreements in principle."
The settlement money will not come from student tuition, donations or taxpayer funds, rather, it will be covered by "various liability insurance policies."
Sandusky was convicted last year of 45 criminal counts. He maintains his innocence and is seeking a new trial as he serves a prison sentence of up to 60 years.