Strontium titanate (SrTiO$_3$) is a foundational material in the emerging field of complex oxide electronics. While its electronic and optical properties have been studied for decades, SrTiO$_3$ has recently become a renewed materials research focus catalyzed in part by the discovery of magnetism and superconductivity at interfaces between SrTiO$_3$ and other oxides. The formation and distribution of oxygen vacancies may play an essential but as-yet-incompletely understood role in these effects. Moreover, recent signatures of magnetization in gated SrTiO$_3$ have further galvanized interest in the emergent properties of this nominally nonmagnetic material. Here we observe an optically induced and persistent magnetization in oxygen-deficient SrTiO$_{3-delta}$ using magnetic circular dichroism (MCD) spectroscopy and SQUID magnetometry. This zero-field magnetization appears below ~18K, persists for hours below 10K, and is tunable via the polarization and wavelength of sub-bandgap (400-500nm) light. These effects occur only in oxygen-deficient samples, revealing the detailed interplay between magnetism, lattice defects, and light in an archetypal oxide material.