Young sat out last weekend's game against Maryland and will miss Saturday's game at Rutgers. He admitted last week that he accepted a loan last year from someone he described as a "family friend" but repaid it in full.
Although Young repaid the loan, the NCAA considers it an extra benefit because Young didn't meet the friend until after his recruitment to Ohio State had started.
"I want to thank and express my sincere gratitude to university staff members who worked so diligently and expertly to learn and understand the facts, and then to report these facts to the NCAA as part of our request to have Chase reinstated," Ohio State athletic director Gene Smith said in a prepared statement. "This is the example of the culture of compliance we have at Ohio State. I also want to commend Chase Young and let him know how proud we are of him. He took responsibility for his actions, cooperated throughout the process and understood and accepted that there would be consequences."
The Buckeyes (9-0 overall, 6-0 Big Ten) requested a one-game suspension for Young but accepted two. Smith told reporters later Wednesday that the school "felt that mitigating facts took it to a point where only a two-game suspension was necessary."
Young reacted to the decision on Twitter, writing that he is "blessed to be a part of this team, this university, and this community."
Excited to be back on the field next week! Thank you Buckeye Nation for all the love and support. I'm blessed to be a part of this team, this university, and this community. Lots of love to my family. God Bless and Go Bucks!— CY2 (@youngchase907) November 13, 2019
Ohio State made a request for immediate reinstatement with the NCAA, including asking for a decision to be expedited. The NCAA completed its review of Young's case Wednesday.
Asked whether Ohio State considered sweeping Young's violation under the rug, Smith said, "We never cover anything up. We're never going to do that. My 34 years of doing this business, I've never even thought about doing that.
"You own certain things in life as an individual. My integrity's all I got, and nobody's going to take that from me. I may make mistakes, I may say things wrong, I may do things wrong, but it's coming from the right place. So, no, that's not even a thought of mine. And if someone asked me to do that, I'm history."
Smith denied rumors that Maryland or Penn State had been the source of the reporting of the violation, though he wouldn't say who it was or if it was anonymous.
"I want to be clear that the accusations did not come from anyone from Maryland, did not come from anyone from Penn State or any other school in the Big Ten Conference, despite what all the things that my teammates are telling me that is out there in that social media sphere that I am totally unfamiliar with," Smith said. "But I want to be clear that it was not someone from Maryland or Penn State from what I'm hearing."
Young reportedly accepted the loan to help pay for his girlfriend to fly to watch Ohio State play in the Rose Bowl last season. The identity of the family friend has not been revealed.
Ohio State learned of the potential violation after Young's standout performance against Wisconsin on Oct. 26.
Young has 13.5 sacks this season -- just one-half sack shy of Ohio State's single-season record. He had four sacks, five tackles for loss and two forced fumbles against the Badgers, a performance that put him in the Heisman Trophy conversation.
Ohio State, which dropped to No. 2 in the latest College Football Playoff rankings, beat Maryland 73-14 without Young and enters the Rutgers game as a 50-point favorite. Young will return for next week's home game against No. 9 Penn State. Ohio State finishes the regular season at No. 15 Michigan on Nov. 30.
ESPN's Tom VanHaaren contributed to this report.