Lori Loughlin's Daughters, Olivia Jade & Isabella, Were Not Kicked Out Of USC Sorority After All —Here's Why

Lori Loughlin's daughters, Olivia Jade and Isabella Giannulli, were not kicked out of the Kappa Kappa Gamma sorority at the University of California, despite reports saying they were booted from the chapter amid fallout from their parents' alleged involvement in the Operation Varsity Blues college admissions scandal.

In a statement to Fox News, a representative of Kappa Kappa Gamma clarified that Isabella Giannulli remains in the Delta Tau chapter of Kappa Kappa Gamma, but that Olivia Jade was never even in the sorority because she didn't complete her paperwork.

"The story regarding these two individuals is false. Bella Giannulli remains an active member of the Delta Tau chapter of Kappa Kappa Gamma. Olivia Jade did not complete the membership process."
The official statement comes after a source told Us Weekly that Olivia Jade, 19, and Isabella, 20, "were both in Kappa Kappa Gamma and the sorority has since kicked them out and is trying to distance themselves from the situation as much as possible."

The girls' parents, Fuller House star Lori Loughlin and her husband, designer Mossimo Giannulli, were accused of paying $500,000 in bribes to shady college prep expert, William "Rick" Singer, to help get Olivia Jade and Isabella into the university as fake crew team recruits. In the aftermath of the scandal, the Giannulli sisters' academic status at USC is in limbo.

A statement from the school posted by Us Weekly revealed that USC placed holds on the accounts of students who may be associated with the alleged admissions scheme and that the students would be withheld from registering for classes, withdrawing from the university, or acquiring transcripts while their cases are under review.

A source close to the sisters recently told Us that Olivia Jade wants to go back to USC and is "begging the school to let her back in."

The Blast notes that the 19-year-old YouTube beauty guru, who lost lucrative endorsement deals with Sephora and Tresemme following the admissions scandal, previously dished that she was not interested in the academic aspect of college. In a now-viral YouTube video, Olivia Jade said she looked forward to the "experience of game days" and "partying" at USC, before admitting, "I don't really care about school, as you guys know."

Loughlin and Giannulli both issued a plea of "not guilty" for the fraud and money laundering charges against them. If convicted of all charges, they could each face up to 40 years in prison.