Gwyneth Paltrow is NOT happy after a recent incident at her daughter, Apple‘s school.

In Touch can exclusively reveal that the Iron Man star is “outraged, disgusted, and very, very upset” after learning students at Harvard-Westlake have been using racial and homophobic slurs, particularly the N-word, on social media.

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“She is a very involved parent and wants to make certain the students involved are properly dealt with, not just disciplined, but educated about the hurtful, disgusting racist terms used and the hurt it causes,” says a source, who added that she and other parents are “genuinely concerned the students involved won’t be significantly disciplined because one of the kids involved is a high school senior about to go away to college. Obviously having this in the student’s file could damage her chances of getting into an elite school. Harvard-Westlake is all about bragging about students going to only the best colleges and parents fear this could be brushed under the carpet to save face.”

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And that’s not all. Apparently, Gywn has bragged in the past about the institution to her famous friends Jay Z and Beyoncé, who have considered enrolling their five-year-old daughter, Blue Ivy, when the time comes.

“[Gwyn is] very influential at the school because of her celebrity status,” the insider continues. “She has openly bragged in the past that Beyoncé and Jay Z would absolutely send Blue Ivy to Harvard-Westlake. Would Blue Ivy’s parents send her to the school knowing this was going down?”

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Harvard-Westlake did not want this story to be made public, though the incident was addressed this week in a letter to parents.

“Yesterday [Feb. 16], posts by several Harvard-Westlake students using homophobic and racist language, (including repeated use of the N-word) appeared on social media and have been widely shared. The posts were originally made 18 months ago and the school was unaware of them at the time because they were posted to private feeds only. We became aware when they were re-posted yesterday in a more public manner by someone who is not a Harvard-Westlake student,” it read.

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He then added that this type of banter “should have no place at Harvard-Westlake, where it is our mission ‘to be a diverse and inclusive community’ and where it is our stated aim ‘to enable every member of the community to feel an equal sense of belonging.’ The fact that these words are among us represents a failure of our mission, and it is an urgent call to action.”

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