Hunter has started every game for the Hoosiers the past two seasons, recording 36 tackles and an interception in 2014.
GoPokes.com earlier reported Hunter's plans.
The Cowboys have enjoyed success with graduate transfers the past two seasons. Two years ago, corner Tyler Patmon arrived from Kansas and became a key part of the Oklahoma State secondary.
Last year, Josh Furman transferred in from Michigan and emerged as a starter at outside linebacker.