The offense tired to mount a comeback, but penalties and turnovers plagued its efforts.
Wallace was questionable in last week's game against Maryland and Washington has missed the last two weeks due to an injury.
Both Carter and Warren are considered first-round prospects in the upcoming NFL Draft.
Olesh was committed to Michigan since July 8.
The Nittany Lions faced two top 25 passing offenses earlier this season and allowed a combined 301 yards.
The Nittany Lions will face No. 1 Oregon in the Big Ten Championship game on Saturday.