Defensive Coordinator Tom Allen will take over as the permanent head coach.
The No. 10 Hoosiers upset the No. 3 North Carolina team by nine points.
The Hoosiers hold an 8-6 advantage and are 2-1 against the Tar Heels in the Big Ten/ACC Challenge.
The Hoosiers became bowl eligible after a 26-24 victory on Saturday over rival Purdue.
IPFW defeated the Hoosiers in a stunning 71-68 overtime win.
The penalty is for academic misconduct that took place from 2011 to 2013, involving a student athletic trainer.
This is the Hoosiers' highest ranking since they were third in the next-to-last poll of 2012-13.
The Hoosiers are 2-0 after defeating UMass Lowell last night during their home opener at Assembly Hall.
The Men's Basketball Team cracks the top 10 in the country.
Zeller was a stand out at IU before entering the NBA draft after his sophomore year.