Goals from Ethan Beckford and Callum Pritchatt clinched a home shutout win and the sixth Big Ten playoff seed for the Nittany Lions.
Penn State forced overtime with 74 seconds left, but Iowa's Anthe Nijziel scored the game-winning goal in the second extra period.
Marissa Sheva scored the game-winning goal in the 89th minute Sunday afternoon to send the Nittany Lions to the Big Ten semifinals.
"They were murdered by hatred. They will be remembered with love."
The Nittany Lions moved up three spots in the poll after taking down Iowa at Beaver Stadium.
On first and goal with three minutes left, senior safety Nick Scott refused to buckle under pressure, picking off Iowa's Nate Stanley.