Lori Loughlin's Relationship With Daughter Olivia has 'Improved' After College Scandal Fallout, Source Says

'Time is helping to heal.'

Lori Loughlin's family situation "has improved" recently, a source tells ET.

The 54-year-old Fuller House star and her husband, Mossimo Giannulli, are accused of paying $500,000 in bribes to get their daughters, 19-year-old Olivia and 20-year-old Bella, admitted to the University of Southern California as recruits for the crew team, even though neither of them participated in the sport. They have pleaded not guilty on all charges.

ET's source says that Loughlin is getting back to her day-to-day routine as "the drama seems to have died down since the initial shock" of being charged in the scandal. 

"She still feels she was deceived by those who set up the payment for her daughter’s acceptance [into USC]," the source says.

The source also alleges that Loughlin "has claimed to some friends that she was told the money went to the school."

As for Loughlin's relationship with Olivia -- which a source previously told ET had been suffering since the scandal broke -- the current source claims that the mother-daughter pair have started talking but are far from being close again.

"Their family situation has improved," the source says. "Lori knows they will all grow and learn."

"Things are better than they were," a second source adds. "Time is helping to heal."

Back in May, a source described Loughlin's shaky relationship with her youngest daughter.

"Olivia is having a very hard time dealing with this, and for the most part, she's cut herself off from her mother and is going out and partying a lot," the source told ET at the time. "She feels she hasn't been a part of any wrongdoing and feels tricked by her parents into going to a school that wasn't even her top choice. Right now she wants to prove she can do it on her own, and she thinks going back to school will help renew her image."

“[But] Lori and Bella have remained incredibly close throughout and have been a wonderful support to one another," the source added of Loughlin's older daughter. "Their closest friends feel it's been devastating to watch the effects this situation has had on their family and their relationships. They fear if their plan doesn't work in court, it will break them up even more."

Watch the video below for more on Loughlin.