Ultimately, charges related to hazing, alcohol and drugs, failure to comply with COVID-19-related "expectations," and university regulations prompted the suspension, according to Penn State.
Lundy is the sixth Nittany Lion to reportedly enter the transfer portal Tuesday.
The senior captain led the Nittany Lions offensively with 22 points in 22 games this season.
The Nittany Lions remained in the Top 25 for the third straight week in 2021.
Myreon Jones, Izaiah Brockington, and Trent Buttrick have all reportedly entered the transfer portal.
Wheeler is the second Nittany Lion to reportedly enter the transfer portal recently.