Donald Trump to pay $25 million to settle Trump university litigation

US President-elect Donald Trump has agreed to pay $25 million to settle several lawsuits against now-defunct Trump University, New York state Attorney General Eric Schneiderman said.

"I am pleased that under the terms of this settlement, every victim will receive restitution and that Donald Trump will pay up to $1 million in penalties to the State of New York for violating state education laws," Schneiderman said in a statement on Friday.

The agreement covers two federal class-action cases in California and a separate suit brought by the New York attorney general against the university, a for-profit entity that opened in 2004 and closed in 2010, Efe news reported.

"The victims of Trump University have waited years for today's result, and I am pleased that their patience — and persistence — will be rewarded by this $25 million settlement," Schneiderman said.

New York prosecutors said the university never had the necessary operating licenses and that students were bilked out of thousands of dollars.

Some students paid as much as $35,000 for courses that purported to share Trump's formula for success in real estate.

The settlement eliminates the prospect of the president-elect's having to appear in court.

Trump, who was attacked over the university during the campaign, said before winning the Republican nomination that he was unwilling to settle the lawsuits "out of principle", insisting that many of the students were satisfied with the quality of the instruction.