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Lori Loughlin’s two daughters Olivia Jade, left, and Isabella Giannulli, right, reportedly withdrew from the University of California after Loughlin and her fashion designer husband Mossimo Giannulli were arrested in connection with a college admissions scandal.

According to TMZ, Olivia, 19, and Isabella, 20, withdrew from the university on Thursday because they feared being bullied on campus.

The news comes after it was reported that Olivia and Isabella were vacationing on USC chairman Rick Caruso’s yacht in the Bahamas when news of the federal indictments broke on Tuesday.

Caruso, chairman of the USC Board of Trustees, released a statement saying the Giannulli girls were among his daughter’s friends who celebrated spring break on his yacht.

“My daughter and a group of students left for spring break prior to the government’s announcement yesterday,” Caruso said in a statement to TMZ. “Once we became aware of the investigation, the young woman decided it would be in her best interests to return home.”

The fallout began when beauty giant Sephora terminated a partnership with Olivia who was named the makeup company’s brand ambassador in 2018.

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Sephora announced the end of their partnership with Olivia on Twitter.com.

“After careful review of recent developments, we have made the decision to end the Sephora Collection partnership with Olivia Jade, effective immediately,” Sephora tweeted on Thursday.

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Late Thursday, Hallmark Cards announced it was cutting ties with Loughlin (pictured with Mossimo).

In a statement, Hallmark Cards Inc, the parent company of the Hallmark Channel, said it would no longer work with Loughlin.

Loughlin starred in the network’s show “When Calls the Heart” and regularly appeared in the channel’s Christmas movies.

At least 50 wealthy parents, CEOs, and coaches were indicted in the largest college admissions fraud and bribery scandal in the U.S.

Loughlin and Giannulli were arrested this week and released on $1 million bond each. Giannulli used his Bel-Air mansion as collateral to secure his bond.

Photos by Frazer Harrison/Getty Images, Rachel Murray/Getty Images, John Shearer/WireImage