According to a statement announcing the settlement, Michigan State will pay $425 million to the current and former students who are already party to the various lawsuits brought against the university, and set aside $75 million for any future claimants.
The agreement was announced Wednesday by Michigan State and lawyers for 332 victims.
He is serving a 60-year sentence for child pornography.
After telling Nassar his sentence, Judge Rosemarie Aquilina responded, "I just signed your death warrant".
Brian Breslin, chairman of the university's board of trustees, released a statement welcoming the end of the litigation and apologising to Nassar's victims and their families. It does not address claims against US gymnastics, the United States Olympic Committee, Bela and Martha Karolyi, Twistars, John Geddert or any other parties.
Numerous survivors said in their statements MSU and other gymnastics authorities got wind of the assaults in the late '90s, but no actions were taken against Nassar.
MSU says there will be no confidentiality agreements or nondisclosure agreements attached to the settlement. Lawsuits still are pending against Indianapolis-based USA Gymnastics, the U.S. Olympic Committee and an elite gymnastics club in the Lansing-area where assaults occurred. The first Nassar lawsuits were filed in fall 2016, shortly after Nassar was sacked from MSU.
The special prosecutor, Bill Forsyth, issued a statement reacting to the settlement, saying the investigation is not done.
"All these courageous women have power, and we will use our voices to make sure you get what you deserve, a life of suffering spent replaying the words delivered by this powerful army of survivors", she said. MSU trustees OK'd the arrangement in a Tuesday night conference call.
"It is the honest hope of all of the survivors that the legacy of this settlement will be far-reaching institutional reform that will end the threat of sexual assault in sports, schools and throughout our society", he added.
On April 13, survivor Kaylee Lorincz revealed MSU interim President John Engler offered her $250,000 to settle her case against the university.
The deal was introduced Wednesday by Michigan State and legal professionals for 332 victims. But the university cleared him repeatedly and in 2014, said those alleging sexual assault had mistaken proper medical treatment for sexual assault.