Penn State has spent more than $50 million on other costs related to the Sandusky scandal, including lawyers' fees, public relations expenses, and adoption of new policies and procedures related to children and sexual abuse complaints.
It said Monday that liability insurance is expected to cover the payments and legal defense, and expenses not covered should be paid from interest paid on loans by Penn State to its self-supporting units.
Clifford Rieders, a Williamsport attorney who negotiated one of the settlements, said the average payout matched other cases involving child abuse in educational or religious settings.
Rieders said the cases raised the specter of embarrassing revelations if they went to trial, and a university would have to consider the effect on the victims, its overall reputation, its ability to pay and its wider objectives.
"There are many considerations whenever you resolve a high-profile case involving serious misconduct, and I'm sure all of those and more came into play here," Rieders said.
Sandusky, 69, has been pursuing appeals while he serves a 30- to 60-year sentence on 45 criminal counts.
He was convicted of abusing 10 boys, some of them at Penn State facilities. Eight young men testified against him, describing a range of abuse they said went from grooming and manipulation to fondling, oral sex and anal rape when they were boys.
The 32 claimants involved in negotiations with Penn State include most of the victims from the criminal trial and some who say they were abused by Sandusky many years ago. Negotiations were conducted in secret, so the full range of the allegations wasn't disclosed publicly.
Sandusky did not testify at his trial but has long asserted his innocence. He has acknowledged he showered with boys but insisted he never molested them.
The abuse scandal rocked Penn State, bringing down football coach Joe Paterno, and leading college sports' governing body, the NCAA, to levy unprecedented sanctions against the university's football program.Three former Penn State administrators await trial in Harrisburg on charges they engaged in a criminal cover-up of the Sandusky scandal. Former president Graham Spanier, retired vice president Gary Schultz and retired athletic director Tim Curley deny the allegations, and a trial date has not been scheduled.