On Friday, the federal judge declined to dismiss the charges against the 'Full House' star, her husband and several other parents.
Lori Loughlin is determined to prove her innocence, but after she lost her bid to have the charges against her dropped in the college admissions scam, the Fuller House star is feeling "nervous."
In Boston on Friday, U.S. District Judge Nathaniel Gorton declined to dismiss the charges against Loughlin, her husband, Mossimo Giannulli, and several other parents after they accused investigators of fabricating evidence.
A source tells ET that "Lori is convinced she did nothing wrong and wasn't expecting the judge to side against her. Despite her set back, she has no plans to back down from her non guilty plea. She strongly believes that [bribery scam ring-leader Rick] Singer misrepresented himself and, because she thought he'd acted on behalf of the school, she feels she is innocent."
The source adds that Loughlin "never in her life thought that she would ever be in this position, and it's almost like a bad dream she can't wake up from. Lori is determined to prove her innocence and she won't back down."
"The ruling made Lori nervous," the source notes.
Loughlin and Giannulli are 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. The 55-year-old actress' lawyers alleged that prosecutors acted inappropriately in regard to one of their main witnesses, Singer, and that they tried to conceal exculpatory evidence.
Both Giannulli and Loughlin have pleaded not guilty to all charges leveled against them, claiming their payments were donations to the school and not bribes. The couple is to face trial along with six other parents in October.
The source adds that Loughlin's "not the least bit embarrassed, but works very hard to hide her fear from her daughters."
"The girls are following their parents lead. Lori's friends are very concerned that in trying to protect her daughters that they might just be misleading them to believe it's an easy win," the source continues. "They worry the girls will be unprepared for the verdict because they trust their parents and it's in no way cut and dry."
In the meantime, the source says that Loughlin and her girls "are still social distancing together and, for the most part, have tried to separate themselves from anything related to the scandal. Olivia and Bella are happy and have been staying with [Olivia's boyfriend] Jackson [Guthy]. Olivia and Jackson are happier than ever and they even started a family by adopting a puppy."
For more on the family's case, watch below.