It doesn't seem like they want me to appeal, but, I am going to try. I've talked to a couple professors and one of them actually seems like he really wants to work with me.
The department is in the middle of contacting them about it now because they hadn't heard of the decision until I brought it up to them. From what I can guess, the department wants me there and it's not necessarily a big school so I'm sure as it is, they don't get many grad students going through.
It seems like the grad school wants me to either apply for a MS program instead of a PhD or take a semester as an undergrad to be on academic probation. My GPA isn't necessarily bad but it's not what they state their minimum requirements are.
To add on to this, I have research experience, I'm an officer in multiple clubs, and I work 30 hours a week. I'm hoping if they do let me appeal it, I can bring those points up to help justify it.
Fingers crossed!