US President-elect Donald Trump will pay $25 million to settle lawsuits accusing his now-defunct Trump University of fraud.

A trio of suits brought by former students alleged that the training program which was not an accredited university or college, but was operating from 2005 to 2011 fleeced students by tricking them with aggressive marketing.

New York state attorney general Eric Schneiderman said in a statement that, "Today's $25 million settlement agreement is a stunning reversal by Donald Trump and a major victory for the over 6,000 victims of his fraudulent university."

"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."

The Students paid as much as $35,000 to enroll, wrongly believing they would make it big in real estate after being taught by the Manhattan mogul's hand-picked experts, said the suits brought in California and New York.

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