The settlement brought together three cases: an investigation by Mr. Schneiderman’s office and two lawsuits in California. The cases centered on whether Trump University had lured students into buying expensive courses, failed to deliver on the instruction and training promised to them, and pressured them to spend even more after their initial fees.

Mr. Schneiderman’s office investigated Trump University and filed its lawsuit in New York in 2013, alleging that students hoping to learn Mr. Trump’s real estate tips ended up with a “hard lesson in bait-and-switch.” Some customers paid thousands of dollars, and up to $35,000 for Trump Elite mentoring programs, Mr. Schneiderman alleged, only to be disappointed by unfulfilled promises and scant training in real estate.

Meanwhile, the lawyers in California filed two separate cases in federal court on behalf of former students who made similar claims. One of the cases was nearing trial on Nov. 28, a circumstance that appears to have hastened the settlement. That case was being heard by Judge Curiel, whom Mr. Trump has publicly criticized, questioning his impartiality because of his Mexican heritage.

The plaintiffs’ lawyers, who waived their fees, said they expected 7,000 former students nationwide to recover half to all of what they spent at Trump University, which operated from 2004 to 2010. The settlement still awaits approval by the courts, which could take months.

It is difficult to estimate how much Mr. Trump made, in total, from Trump University. However, according to the New York lawsuit, Mr. Trump personally earned $5 million from the operation. It is also not clear if an insurance policy would cover any part of the settlement.

One of the lawyers in the California cases, Amber L. Eck, said she heard from dozens of former students since the settlement was announced on Friday. “They are very grateful to be finally getting back a large part of the money they spent, a long time ago, especially since some are still paying for this,” Ms. Eck said.

Mr. Trump has long rejected the allegations against Trump University, saying that the cases should have been dismissed long ago, that students got their moneys’ worth, and that he would ultimately win. Although the case files offer many examples of the dissatisfaction of some students, Mr. Trump’s legal team has pointed to praise from many others who took the course, including some who have said the training prepared them for real estate investing.