Terrell, a senior, started USC's season opener, a loss against Utah State, and scored a team-high 20 points. He did not start the Trojans' next two games, against Cal State Northridge and Northern Arizona, and did not play at all against Cal State Fullerton on Tuesday.
Coach Andy Enfield had told reporters than Terrell was working to put his schoolwork in order.
USC has won three consecutive games entering Thursday night's game against West Alabama at the Galen Center.
Terrell is averaging 10 points per game this season. He led the Trojans with a 13.4 scoring average during Pac-12 play last season.
USC will not be required to forfeit the games this season in which Terrell played, according to a school spokesman. Terrell will miss at least six games, but he could become eligible again after Dec. 15, which means he could return for a game against Long Beach State on Dec. 19.