The alleged incident happened on January 15 on the State College campus, specifically inside the Alpha Epsilon Pi house on Prospect Avenue.
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On Wednesday, the university announced the Phi Sigma Delta Sigma chapter of Alpha Epsilon Pi Fraternity was on interim suspension.
"Penn State is committed to the safety and wellbeing of all students in our community and takes allegations of sexual misconduct seriously," said Penn State in a statement.
The alleged assault, involving four male fraternity members, was reported to university police in an online submission.
Alpha Epsilon Pi's national organization has been notified and is cooperating with the investigation, according to a news release.
During the interim suspension, Alpha Epsilon Pi loses all privileges, including membership recruitment, new member activities, participation in university-wide functions and hosting social events, the release said.
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Anyone with information about this incident is urged to contact State College Police at 814-234-7150.