The news comes a day after Loughlin was canned by Hallmark, where she was known as the "Queen of Christmas", having appeared in 18 holiday movies on the channel.
"We have confirmed that both Olivia Giannulli and Isabella Giannulli still are enrolled", the university told Fox News on Friday.
Loughlin and her husband, Mossimo Giannulli, have been charged with conspiracy to commit mail fraud and honest services fraud. On the trivia show, she was pitted against singer Rydel Lynch and Rachel, who explained that even though she earned a higher score at the end of the show, the production team instructed everyone to re-film everything as if Olivia actually won.
A source tells ET that "the girls are afraid of being kicked out of school and will likely not return on their own". A source close to the show told the outlet, "Fuller House is not now in production".
Olivia and her older sister Isabella Rose have also reportedly dropped out of USC for fear they would be bullied if they returned.
Reports said earlier this week that Olivia Jade, a popular beauty and lifestyle YouTuber, was spending spring break in the Bahamas on a yacht belonging to USC Board of Trustees chairman Rick Caruso when her parents were accused of involvement in the college admissions scheme.
Olivia Jade Giannulli - understandably - disabled the comments on her YouTube vlog this week. "They are both so anxious about their parents and the repercussions".
"After careful review of recent developments, we have made the decision to end the Sephora Collection partnership with Olivia Jade, effectively immediately", the makeup company said in a statement.
"I don't know how much of school I'm going to attend but I'm going to go in and talk to my deans and everyone, and hope that I can try and balance it all", she said.
As for the future of other USC students? "[They] never expected their parents to be charged for any crime, let alone one related to them".