Indiana's Jordan Hulls, who scored a game-high 28 points, made seven straight free throws down the stretch to atone for back-to-back turnovers that allowed Penn State to get within two. Matt Roth, who scored 22 off the bench, made four consecutive free throws in the final 27 seconds.
Big Ten) have three road wins this season; they had only one true road win from 2008 through last season.
The Nittany Lions (9-8, 1-3 Big Ten) were aiming for their second consecutive conference win after dropping their first two in league play, and they played nearly well enough to get it.
Star guard Tim Frazier had 21 points and seven assists, Jermaine Marshall added 20 points, and Penn State held Indiana stars Christian Watford and Cody Zeller to 10 points apiece.
The difference was Indiana's ability to hit from outside. The Hooisers trailed only once, at 8-7, and a Victor Oladipo 3-pointer gave them the lead for good on the next possession.
Indiana hit 16 of 24 from 3-point range, many of which came at key points when Penn State was narrowing the gap.
The Nittany Lions got within 56-53 midway through the second half, but a 3-pointer by Remy Abell and back-to-back 3s by Matt Roth. Roth hit back-to-back 3s again after Penn State pulled within 70-65 with six minutes left.
New Penn State football coach Bill O'Brien was introduced during the game. O'Brien officially was named the school's 15th head coach Saturday.