"Lori has kept a close eye on Felicity throughout the case and after hearing her 14-day sentence, she's been incredibly panicked," the source tells ET. "She can't help thinking, if Felicity received real prison time, what could that mean for her?"
The source added: "Lori didn't believe Felicity should have pleaded guilty but now watching her situation play out, she's been in fear of what's to come for her. Right now, her friends fear the prosecution wants to make an example out of her, not only for the crime she's been accused of, but her not guilty plea."
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John Stamos 'Can't Process' Lori Loughlin's College Admissions Scandal
In April, the 55-year-old TV star and her husband, Mossimo Giannulli, pleaded not guilty to the charges they face for allegedly paying $500,000 in bribes to get their daughters, 19-year-old Olivia and 20-year-old Bella, admitted to the University of Southern California as recruits for the crew team, even though neither had ever participated in the sport.
As for Huffman, in May she pleaded guilty to mail fraud and honest services mail fraud after allegedly paying $15,000 to have a proctor fix SAT questions that her daughter, 19-year-old Sophia, incorrectly answered.
ET's source shares that, "Lori has confided in friends that she has nightmares about what's to come and has been living with constant anxiety. Lori chose a very different path than Felicity and felt taking a deal was a mistake. She doesn't believe she deserves jail time."
"Lori and her husband worked hard this summer to hold their family together, but it's been very rough," the source added.
"I think, given the circumstances of what they're up against with the trial, it's probably the smartest strategy they have yet because jurors would have to believe both of them are lying," lawyer Rachel Stockman previously told ET.
Since, reports have begun circulating that the controversy has set Loughlin and Giannulli on the road to divorce. However, a source told ET this is "absolutely untrue."