Since it came up on FRL and since the article above gets it wrong as well, I'm going to try and find an easier way to explain the rules.
There are two distinct transfer restrictions implicated if Suriano were to leave Penn State for Rutgers, the NCAA's rules and the B1G intra-conference rules.
The risk to violating the NCAA restrictions concerns loss of scholarship money.
The risk to violating the B1G intra-conference restrictions concerns loss of one year of competition eligibility.
Only the NCAA transfer restriction (re scholarship money) can be waived by the current school. Specifically, the dance goes like so: (1) student wishing to transfer goes to present school and requests permission to contact letter for school he'd like to transfer to; (2) student works out deal with new school; (3) present school issues release. Scholarship money is preserved. Simply leaving school 1 for school 2 without doing that dance will result in a loss of athletic scholarship money for the following year.
The B1G intra-conference transfer restriction (loss of one year competition eligibility) can't be waived by the present school. Releases that have come with respect to this rule concern not-yet-matriculated students--students who have signed their LOI but not yet attended a class. But for matriculated students, like Suriano, there's no provision for a release, the rule is automatic and unambiguous.
I imagine, without evidence other than inferring from the Micic situation, that the present school
could cooperate with a petition by the transferring student to waive the B1G restriction (but ultimately the decision would be in the B1G's hands). But I also imagine that the B1G is going to want you have to have a damn good reason, probably amounting to the student being unfairly prejudiced by the rule due to circumstances beyond that student's control. I've no idea what a successful waiver petition would look like, except to infer from Micic's circumstances what makes sense.
I defer to
@RoarLions1 on my interpretation of any of the above, but I read it through and it seems pretty straightforward. But the confusion everyone is having is due to the two distinct restrictions by two overlapping bodies.