"They’re doing much better and had a really good summer together," the source says. "Olivia joined Jackson at his summer home in North Carolina with a bunch of friends and had a blast."
"Before Olivia, Jackson was known as a bit of a playboy," adds the source. "He's a handsome musician from a very successful family."
Rumors started swirling late last week that the two had reunited when the musician posted a black-and-white photo of him and Olivia kissing. The pic shows the brunette beauty holding her phone up to the mirror as she kisses Jackson. "Lil monkey ?I love you," Jackson, 23, captioned the post.
"Jackson's never posted his love for any of the women he's dated on his social media," the source says. "It's definitely a way of showing his love and support for her and to let people know they are a couple."
At the time, fans quickly took to the comments section to share how happy they were to see the two together again.
"Olivia’s friends were shocked when her relationship ended with her boyfriend because he was actually great for her and was a real support," the source said. "He's pretty low key and wanted to help her stay out of the limelight and move on."
The breakup came after Olivia's parents were accused of paying $500,000 in bribes to get her and 20-year-old sister Bella admitted to the University of Southern California as recruits for the crew team, even though neither of them participated in the sport. The parents have pleaded not guilty on all charges.
Last month, another source told ET that Loughlin's family situation "has improved" since the college admission scandal. ET's source said 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 added.
"Their family situation has improved," the source explained. "Lori knows they will all grow and learn."