The settlement was announced Wednesday by the California law firm representing the survivors. It came after two days of talks between lawyers for the school and lawyers for the survivors.
Of the $500 million, $425 million will be paid now and another $75 million will be held in reserve in case additional unknown victims come forward, media outlets report.
Interim MSU president John Engler has previously said that tuition and state aid would help cover the settlement, though state lawmakers have not agreed to helping out the school in such a way.
According to the Detroit Free Press, MSU brought in $859 million in tuition revenue in the '16-'17 school year, about a third of its total revenue of nearly $3 billion. The paper reports that the school also has about $1 billion in debt. An S&P analyst told the paper that MSU is in good financial shape and could probably add debt if it needed to.
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