He played college football at West Chester State University from 1960 to 1962 where he was twice named a Little All-America and All-East fullback.
He was the leading rusher in NCAA Division II as a sophomore and set career and single-season Pennsylvania State Athletic Conference rushing and scoring records that remained unbroken for two to three decades.
He averaged 139.5 yards per game over his three years at West Chester, which ranked second all-time in NCAA Division II history at the time.
West Chester coach, Jim Bonder, told reporters in 1962: "We could use Joe both ways, but you can't expect a boy to run the ball 30 times a game and still play defense.
[12] In November 1961, he rushed for 239 yards and two touchdowns in a 21–0 victory over Slippery Rock to lead West Chester to the Pennsylvania State College Football Conference championship.
"[14] That same month, Sports Illustrated cited Iacone as a small college player who was "good enough to play on any football team.
As a sophomore Iacone crushed the bid of Northeast Missouri's Dale Mills to win his third straight national rushing crown.
Last fall he gained nearly a mile (1,438 yards, to be exact), finishing the season with a wild, 199-yard day against Lock Haven.
'"[16] In the December 1962 Cement Bowl, he gained 190 yards and scored two touchdowns to lead West Chester to a 46–12 upset victory over Hofstra University.
[17][18][19] Prior to the Cement Bowl, The New York Times wrote: "Coach Howdy Myers of Hofstra was chiefly concerned with his team's ability to contain West Chester's mercurial Joe Iacone.
[23] Iacone averaged 139.5 yards per game over his three years at West Chester, which ranked second all-time in NCAA Division II history at the time.