UT plans to appeal the decision.
Couch was one of four current FBS players and one former player implicated in a September report from Yahoo! Sports alleging that the players violated NCAA rules by receiving extra benefits. Couch was said to have received four payments totaling $1,350.
Such actions would violate NCAA Bylaw 18.104.22.168, which prohibits student-athletes from receiving benefits from agents.
On Sept. 12, Tennessee's compliance staff ruled Couch ineligible as it continued to investigate the allegations and await word from the NCAA. He last played in the Vols' Sept. 7 game against Western Kentucky.
A redshirt senior from Orlando, Couch played in 26 career games at Tennessee, amassing 79 total tackles, 3.5 sacks and 12 tackles for loss in his UT career.
After the news broke, Couch thanked UT fans on Twitter.