Sources close to the two young women say the family feels certain that if the girls went back to university at USC they would be "viciously bullied".
Starting on YouTube when she was just 14, the now 19-year-old has developed a number of relationships with brands and has even collaborated with many of them on sponsored content.
"OK, so, who we are ... what we do is we help the wealthiest families in the USA get their kids into school", Singer told one parent, according to prosecutors.
The federal judge permitted her to keep her passport so she can return to Vancouver, Canada, to continue filming her latest Hallmark movie.
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According to the complaint, Mossimo Gianulli emailed pictures of his daughters on indoor rowing machines to William "Rick " Singer, the man who has pleaded guilty to orchestrating the massive scam. TMZ reported that Olivia, known on social media as Olivia Jade, "is a mess, despondent and feeling like it's the end of the world". She and her sister will now "lay low" and won't enroll in another school for some time.
Lori Loughlin in a courtroom sketch in Los Angeles on Wednesday.
Products from her makeup collaboration had been removed from Sephora's website by Thursday afternoon.
Since news of the scandal was released, the Sephora Collection x Olivia Jade Palette was bombarded with negative reviews on the product's page on the retailer's web site, where reviewers bashed Jade and demanded the palette be discontinued.
Loughlin's representatives did not immediately respond to Mashable's requests for comment.
Ironically, Singer - who allegedly said his goal was to "help the wealthiest families in the U.S. get their kids into school" - claimed the KWF nonprofit was aimed at helping poorer students. Macy wasn't changed in the case. Giannulli appeared Tuesday in federal court and was released on $1 million bail; his next court appearance is March 29 in Boston. The scammers allegedly aimed to boost their kids' chances of gaining admission to prestigious colleges, including Yale and Wake Forest. Because of her poor attitude towards school, and the fact that her parents literally paid to get her in, many brands no longer wish to be affiliated with Olivia.
As part of her bond arrangement, Loughlin is being permitted to travel within the continental U.S.as well as British Columbia, where she is now filming. Prosecutors say the company also bribed university athletic coaches and administrators to get students admitted under the guise of being recruited as athletes.