Following the Jerry Sandusky scandal, Penn State received a four-year ban from receiving a portion of the league's bowl revenues. According to Rittenberg, the school missed out on payments of $2.26 million in 2012, $2.75 million in 2013 and a projected $4.6 million in 2014.
The Big Ten's decision comes one month after the NCAA settled with the school and restored Joe Paterno's 112 vacated wins.
"The Big Ten's original bowl fine was based on NCAA actions, most of which have been rescinded over the past six months," the league said in a statement. "As a result, the [Council of Presidents/Chancellors] supported restoration of Penn State's bowl revenue effective with the 2015-16 academic year."
The school was originally given a four-year bowl ban, but that was lifted prior to the 2014 season.
Last week, Penn State president Eric Barron said a possible decision to restore Paterno's the statue is not imminent. A Quinnipiac University poll showed that a majority of Pennsylvanians favored restoring the statue.
Penn State finished 7-6 in its first season under head coach James Franklin. The Nittany Lions defeated Boston College in the Pinstripe Bowl.
- Paul Palladino