Loughlin and Olivia Jade, a YouTube star, were reportedly estranged after Loughlin and husband Mossimo Giannulli were two of 50 people indicted in the nationwide scheme on March 12.
Olivia Jade, 19, was reportedly so upset with her parents that she refused to speak to them and was staying with her boyfriend in Malibu.
“Olivia was angry with her parents at first, but now realizes that they were just trying to do what’s best for her,” the source said. “Olivia loves her mom and dad very much, but is especially close with Lori.”
Olivia Jade has been working on moving on and is contemplating how to best go about posting again on social media, which she has put on pause since the indictments. She has nearly 2 million subscribers on YouTube and had a number of partnerships with big brands, including Sephora and TREsemme, before the scandal erupted.
She is “focusing on how to turn this around so she can be famous for the right reasons again," the source said.
Loughlin and Giannulli allegedly paid $500,000 to William "Rick" Singer to get their daughters, Olivia Jade and Isabella, 20, designated as crew recruits for the University of Southern California (USC).
The gambit got the girls into the elite school.
Singer, who headed a nonprofit known as The Key Worldwide, pleaded guilty the same day the indictments were revealed to a slew of charges and is due to be sentenced in June.
While actress Felicity Huffman and others involved in the case pleaded guilty earlier in April, Loughlin and Giannulli opted to plead not guilty, leading to a second charge being leveled against them. They are now each facing up to 40 years in prison.
Prosecutors said that Singer funneled some of the money to Laura Janke, 36, who was at the time an assistant women's soccer coach at USC. Janke created the fake crew profiles.
Some of the many emails and phone calls obtained by officials were correspondence between Janke and Singer. In one case, Singer emailed Janke directing her to make the fake profile for Olivia Jade.
“Ok sounds good,” Janke responded, the complaint states. “Please send me the pertinent information and I will get started.”
Janke completed the profile and Singer emailed it to Giannulli two days later, requesting an "action picture." Giannulli later sent a picture of Olivia Jade on a rowing machine.
After the scandal broke during her freshman year, neither Olivia Jade nor her sister have been seen at school since. The university said that it was investigating students linked to the scandal and that the students can't drop out or register for classes until the probe was complete.