Lori Loughlin 'Strongly Believes' She Shouldn’t Face Jail for Her Alleged Role in College Scam (Exclusive)

'She truly feels it was all a misunderstanding,' a source tells ET about the actress' alleged role in a college admissions scam.

Lori Loughlin believes she “doesn’t deserve” jail time for her alleged role in a nationwide college admissions cheating scam, a source tells ET.

The Fuller House star and her husband, Mossimo Giannulli, are accused of 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 of them participated in the sport. They both entered not guilty pleas in April.

“Lori’s situation has gone from bad to worse,” a source close to the actress tells ET. “Jail time has always been a possibility, but since more charges were filed her reality [of not serving time] seems grim. While the fact she could serve time never leaves her mind, she strongly believes she doesn’t deserve to. She truly feels it was all a misunderstanding."

Making matters worse, Olivia is now reluctant to listen to her parents, according to the source.

“Olivia Jade is totally over it and won’t listen to anything her parents say now,” the source says. “She is in no way ready to forgive anything her parents have done. Lori doesn’t understand Olivia’s reaction. She seems to feel her act was selfless and misunderstood and she wants to prove she had all the best intentions and even that she was, in some way, duped into breaking the law.”

The source adds that Loughlin thought Olivia would have forgiven her by now and that the two have attended therapy to help save their relationship.

“Lori felt at this point her daughter would come around and forgive her,” the source says. “They have gone to therapy in hopes things would improve, but it doesn’t seem that that’s happened. Olivia is still not talking to her mother because she’s hurt and feels betrayed.”

“She feels this could have all been avoided had her mother listened to her when she expressed she wasn’t interested in going to college,” the source continues. “The fact she has lost her business deals and can’t go out in public without being photographed and scrutinized is a constant reminder of what her mother has done.”

Meanwhile, the former When Calls the Heart actress’ friends are hoping that she admits some guilt in the case. They continue to stand by her as court proceedings unfold.

“[Lori’s] children and most of her friends aren’t entirely convinced this was some kind of a mistake,” the source explains. “They know she is a loving mother who only wants the best for her kids, but they also know she needs to face that what she did was unlawful and [how it ]has affected not only her children, but also many others. Her friends want her to rethink her plan for the case and admit some sort of guilt. Her closest friends have stuck by her despite her huge mistake.”

Their hopes for Loughlin to own up to her alleged actions come as fellow television star Felicity Huffman formally pleaded guilty for her part in the scam during a court appearance in Boston, Massachusetts, on Monday.

“Felicity worries non-stop because she knows she has made the worst mistake of her life," a source told ET. "Her hope is that after she is able to complete her deal that she will be able to rebuild her family life."

See more on the case below.