At Illinois girls we wore other letters all the time. It was "cool" because it meant you had friends in that fraternity. Usually they were just loaners - let me wear your sweatshirt for while and you can wear an AOII hat or something. It didn't designate being a sweetheart or anything.
ETA: It was also "cool" to have paddles from other fraternities and sororities that you had been given as gifts.
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Adding 's does not make a word, not even an acronym, plural
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