On Thursday, the U.S. Attorney's Office in the District of Massachusetts announced that the 55-year-old actress will plead guilty to one count of conspiracy to commit wire and mail fraud, while her husband, 56-year-old Mossimo Giannulli, will plead guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud. The couple is accused of paying $500,000 in bribes to get their daughters, Olivia Jade and Isabella Rose, admitted to the University of Southern California as recruits for the crew team, though neither of them had ever participated in the sport.
"Lori is doing OK," one source tells ET of Loughlin's current mindset. "She's hanging in there."
Meanwhile, another source tells ET that Loughlin deciding to plead guilty has been one of the most difficult decisions of her life and that she's "scared" concerning what's to come. If approved by the court, her plea deal states that she will serve two months in prison and two years of supervised release, pay a $150,000 fine, and complete 100 hours of community service. Meanwhile, under his proposed plea deal, Giannulli will serve five months in prison and two years of supervised release, pay a $250,000 fine, and complete 250 hours of community service.
"Just thinking about the reality of the situation is frightening for her," the source says. "She is also terrified for her husband who will serve longer than she will."
"She truly believes she was looking out for her children's best interest and giving back to the school," the source adds. "Pleading guilty was never part of the plan. Lori sees herself as a good person, so coming to terms with the huge mistakes she's made and the fact that she will do time, is crushing for her."
According to the source, the entire ordeal has changed Loughlin's relationship with her daughters.
"They were always a close-knit family but they are more bonded than ever before," the source says. "The girls have matured a great deal and Lori now accepts them both individually for who they are and who they want to be."
"They have grown up a great deal through this experience," the source continues of 20-year-old Olivia and 21-year-old Isabella. "The girls know how much their mother loves them and what she will sacrifice for a better life for them, but they also realize no one is above the law. Right now their hope is that the judge will accept their pleas and they can move forward. Not knowing their future has been torturous for the family."
ET has learned that Loughlin and Giannulli's plea hearing scheduled for Friday will take place via video conference. Prior to Thursday's announcement, the two initially pleaded not guilty to all charges leveled against them, claiming their payments were donations to the school and not bribes.
Amid all the legal drama, it certainly appears Loughlin is closer to her daughters than ever. Both Olivia and Isabella posted heartfelt tributes to Loughlin on Mother's Day, a big change from where their relationship was last year, when a source told ET that Olivia especially was "really angry" at her parents following the scandal since they pushed her to go to college even when she didn't want to go. Watch the video below for more: