Kevin Ferrell added 15 points for the Hoosiers (17-2, 5-1 Big Ten), winners of two straight since falling at home to Wisconsin last week. Indiana scored the game's first seven points and went on a 20-5 run that began late in the opening period.
Oladipo and Ferrell combined to make five of Indiana's 11 3-point field goals.
D.J. Newbill led Penn State (8-11, 0-7) with 18 points. The Nittany Lions lost their seventh game in a row and have dropped their last 14 on the road dating to last season.