Young is facing an indefinite suspension for the potential violation, according to Lettermen Row's Austin Ward.
The junior released a statement Friday outlining what he did to warrant disciplinary action from the NCAA:
"Unfortunately, I won't be playing this week because of an NCAA eligibility issue. I made a mistake last year by accepting a loan from a family friend I've known since the summer before my freshman year at OSU. I repaid it in full last summer and I'm working with the University and NCAA to get back on the field as soon as possible. I want to thank my family, teammates, coaches, and the whole Ohio State community for all the love and support. God bless and go Bucks!"
The family friend in question is not an agent or a Buckeyes booster, a source close to Young told Fox Sports' Bruce Feldman.
The Buckeyes' athletic department is looking into the issue. The school is optimistic the defensive star will return this season, sources told Ward.
The infraction would be the first hiccup of the Ryan Day era at Ohio State, as the team has cruised to the top of the CFP rankings with an 8-0 record through the season's first two months.
The junior has posted 13.5 sacks - one more would give him the single-season school record - and five forced fumbles through eight games this year. Young is coming off a career day against Wisconsin where he recorded four sacks.