Judges across Canada are giving their approval to a settlement plan worth up to $5 billion with former students of Indian residential schools.

Earlier this year, nine courts across the country were reviewing the deal proposed by the federal government, which includes $1.9 billion in "common experience" payments for everyone who attended the schools.

According to court documents released Friday, seven out of nine of the judges are in agreement with the settlement. Two northern judges are still considering the package.

The historic proposed deal, which requires the approval of all nine judges, was reached last year following discussions among the federal government, churches and former students.

It applies to about 80,000 former students who attended residential schools.

"This has been so many years in the making," said Phil Fontaine, the grand chief of the Assembly of First Nations.

Fifteen years ago, he was one of the first to come forward with a personal story of his painful experience at a residential school. He said the settlement will put an end to that era in Canadian history.

"Never again will such a racist agenda be tolerated in Canada," he said.

Under the proposed deal, claimants will receive $10,000 for the first year they attended a school, plus $3,000 for each subsequent year.

"These people will finally be able to receive the compensation they are entitled to receive," said John McKiggan, a lawyer representing more than 500 Mi'kmaq and Maliseet in the Maritimes who attended the former Shubenacadie residential school in Nova Scotia.

Among those hearing the news Friday was Nora Bernard, a resident at Shubenacadie from 1945 to 1950.

"I'm so shocked," said Bernard, who grew up on the Millbrook First Nation and had been fighting for compensation for 11 years. "I knew it was coming, but it's hard to believe.

"Now my people will be able to try to put this to rest."

Bernard has bad memories of her time at school. She said she was often hungry and was forced to work cleaning and making clothes.

Under the compensation formula, Bernard expects to receive around $22,000.

In addition to the money for the common experience payments — averaging about $25,000 per former student — people who were sexually or physically abused or suffered psychological damage can receive additional settlements of between $5,000 and $275,000.

Court heard in Regina that when additional costs are tallied up, a total of $4 billion to $5 billion could be spent resolving claims and on associated programs.

The deal also includes an additional $125 million for the aboriginal healing fund, $60 million for a truth and reconciliation process and $20 million for commemorative projects. About $100 million is being spent on lawyers fees.

Money is expected to begin flowing by next September.

Over the past two decades, there have been more than 12,000 lawsuits launched against the federal government and churches alleging sexual, physical and other kinds of abuse.