They have missed some practice and will miss the MI game.
Several Florida football players are dealing with internal punishment over the misuse of school funds, per sources with knowledge of the situation.
In May, Callaway was cited for a marijuana charge. A Florida spokesman declined to reveal the specific reason for the suspension.
Callaway, a junior from Miami, led the Gators last season with 721 yards.
In July, Callaway pleaded no contest to misdemeanor possession of drug paraphernalia. He received a misdemeanor marijuana citation in May and admitted during a Title IX hearing past year that he was under the influence of marijuana during an alleged sexual assault. His unavailability will be a significant shot to Florida's depth up front.
Houston, Telfort and Miller are all true freshmen, with Telfort being a Booker T. Washington High alum and Houston hailing from American Heritage-Plantation.
Of the seven suspended players, Callaway is the lone starter.
Florida kicks off its season September 2 against MI at AT&T Stadium in Arlington, Texas in the first-ever regular season meeting between the two programs.
Callaway, defensive end Keivonnis Davis, defensive lineman Richerd Desir-Jones, linebacker James Houston, linebacker Ventrell Miller, defensive lineman Jordan Smith and offensive tackle Kadeem Telfort won't be allowed to play September 2 against the Wolverines in Arlington, Texas.
It is unclear what punishment the players received, though some players have missed practice time. The other two suspended defensive linemen - Desir-Jones and Smith - had a chance to play on special teams.
Losing the two linebackers in Miller and Houston hurts a Florida linebacker corps that does not have an upperclassman on scholarship.