Olivia Jade and Isabella Giannulli are gradually returning to the spotlight following their parents' involvement in the 2019 college admissions scandal.
A source tells ET that the sisters are both "hanging in there" and doing "a lot better now" than they were when their mother, Lori Loughlin, and father, Mossimo Giannulli, were first convicted.
Lori started her two-month prison sentence at the Federal Correctional Institution in Dublin, California, on Oct. 30, while Mossimo reported to USP Lompoc, a medium security prison in Santa Barbara, California, on Nov. 19 for a five-month sentence. Lori and Mossimo are set for release on Dec. 28, 2020 and April 17, 2021, respectively. Both have been ordered to pay fines and complete community service upon release.
"Olivia and Bella have gotten closer through this difficult transition," the source tells ET. "The family has all admitted internally, and now publicly -- with Olivia speaking out on Red Table Talk -- that they were absolutely in the wrong. The whole situation ended up being more horrifying than they could have ever anticipated. They are so remorseful and are determined to make things right."
According to the source, there was "a huge strain" on the girls' relationship with Lori and Mossimo for quite a long time after news of their involvement in the scandal went public. While things between the family seem to be better now, Olivia Jade said during her guest appearance on Tuesday's Red Table Talk that she has not spoken to either of her parents since they went to prison.
"There was a point in time that they weren't speaking to their parents at all, but things have gotten to a more peaceful place over time," the source says. "Lori and Mossimo want their children to live happily and the whole family wants to put this behind them and do their best to move on, grow and succeed together and individually. They are hopeful that people, brands, companies, friends and family don't judge them or their children as a result of their mistakes."
Additionally, Lori feels "hopeful in terms of her own career," the source notes, after hearing that Felicity Huffman (who was also involved in the scandal) was recently offered an acting role. ET reported last month that Huffman is set to star in a single-camera comedy that has a pilot production commitment with ABC. It will mark Huffman's first acting gig since finishing her one-year period of supervised release on Oct. 25, after spending 13 days behind bars at the Federal Correctional Institution in Dublin, California.
"Lori is supportive of Felicity," the source says. "She feels as though they experienced this 'together' in a way and she has Felicity's back by extension."
Olivia is also working on rebuilding her image and presence online. "Olivia is looking forward to modeling again and getting social media deals," the source shares. "She knows she can capitalize on those facets of the industry right now, but also knows she needs to re-prove herself in a huge way."
During her Red Table Talk episode, Olivia took full responsibility for her family's actions, admitting, "There is no justifying or excusing what happened."
"What happened was wrong and I think every single person in my family can be like, 'That was messed up, that was a big mistake,'" she said. "But I think what is so important to me is to learn from the mistake, not to now be shamed and punished and never given a second chance, because I am 21. I feel like I deserve a second chance to redeem myself, to show I have grown."
"That's why it's hard, because I'm not trying to come off like ... I am not trying to victimize myself," she continued. "I don't want pity, I don't deserve pity. We messed up. I just want a second chance to be like, I recognize I messed up and for so long I wasn't able to talk about this because of the legalities behind it. I never got to say I am really sorry that this happened or I really own that this was a big mess up on everybody's part. But I think everybody feels that way in my family right now."