Lori Loughlin estranged from daughter Olivia Jade, still thinks she doesn't deserve prison for alleged college scam involvement

College admissions scandal: Lawyers for Lori Loughlin and others due in court

The same day Felicity Huffman pleaded guilty to her own involvement in the college admissions scam, sources close to Lori Loughlin insisted that the "Full House" actress doesn't think she deserves to go to prison — and that she remains estranged from daughter Olivia Jade following the scandal.

“Lori’s situation has gone from bad to worse. Jail time has always been a possibility, but since more charges were filed her reality [of not serving time] seems grim," a source close to the 54-year-old former "When Calls the Heart" star told Entertainment Tonight. "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."

Loughlin and her husband, Mossimo Giannulli, are accused of paying scam mastermind William "Rick" Singer to get their daughters Isabella and Olivia recruited to the University of Southern California (USC) crew team despite neither girl being a coxswain. Insiders previously claimed that Loughlin and Giannulli didn't know they were breaking any laws in the case and felt that Singer "manipulated" them.

Giannulli and Loughlin were each released on $1 million bonds after their arrests in March. After rejecting a plea agreement, the couple was hit with additional charges of money laundering and conspiracy. If convicted of all charges against them, they each face up to 40 years in prison.

The source claims that Loughlin still insists that the entire alleged scam was a misunderstanding, but that Olivia, who reportedly felt that her life was "ruined" by the scandal and moved out of her family's home, isn't buying what her mother is selling.

“Olivia Jade is totally over it and won’t listen to anything her parents say now. She is in no way ready to forgive anything her parents have done," the source said. "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 added that Loughlin and Olivia Jade went to therapy, but that it hasn't helped.

“[Olivia] 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.”

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