Lori Loughlin's Daughters 'Embarrassed' and 'Terrified' Amid College Admissions Scandal: Source

In the wake of the college admissions scandal, a source says that Lori Loughlin and husband Mossimo Giannulli’s daughters are “terrified” about the legal consequences their parents may face as a result of their alleged involvement.

“It’s been very rough on both Olivia and Isabella. They are upset, scared and embarrassed,” a source tells PEOPLE about the Fuller House actress and fashion designer’s two daughters, Olivia Jade Giannulli, 19, and Isabella Rose Giannulli, 20.

“It’s just a nightmare to them that both of their parents were arrested,” says the source, who adds that Olivia Jade and Isabella Rose “are scared about what will happen next.”

Olivia Jade
Olivia Jade

“They are terrified that their parents will end up in jail,” the source says.

RELATED: Olivia Jade Was on a USC Official’s Yacht Amid College Admissions Bribery Scandal

Federal court records unsealed Tuesday in Boston name 50 people who have been allegedly indicted as part of the nationwide scheme, according to a release from the U.S. Attorney’s Office in Massachusetts.

“Dozens of individuals involved in a nationwide conspiracy that facilitated cheating on college entrance exams and the admission of students to elite universities as purported athletic recruits were arrested by federal agents in multiple states and charged in documents unsealed on March 12, 2019, in federal court in Boston,” the release said on Tuesday.

Loughlin, 54, and Giannulli, 55, allegedly paid $500,000 to make it appear that their daughter had been a rower, the indictment states. (Olivia Jade is not currently listed on the USC women’s rowing roster.)

Mossimo Giannulli and Lori Loughlin
Mossimo Giannulli and Lori Loughlin

The couple, who were both indicted, “agreed to pay bribes totaling $500,000 in exchange for having their two daughters designated as recruits to the USC crew team — despite the fact that they did not participate in crew — thereby facilitating their admission to USC,” state the documents.

Although the sisters both attend the University of Southern California in Los Angeles, the source says that “Olivia and Isabella’s personalities were always very different from their parents.”

RELATED: Lori Loughlin Seen Facing Judge in Courtroom Sketch After Arrest in Alleged College Admissions Scam

“They are average students. They have never been obsessed with school and didn’t seem to care that much. They attended school because their parents made them,” the source shares. “Their focus was never about getting straight A’s. It was always clear that it was the parents that pushed them to go to school. Olivia always talks about her vlog. This is her passion. She never really understood why she needs to go to school.”

As details surrounding the scandal continue to unfold, USC said that it will be reviewing all of the students connected to the alleged scheme. (Neither of the daughters have been charged in connection with the scheme, and it is not known whether they were even aware of it.)

A USC spokesperson said in a statement obtained by PEOPLE that the university is “going to conduct a case-by-case review for current students and graduates that may be connected to the scheme alleged by the government.”

“We will make informed, appropriate decisions once those reviews have been completed,” the statement reads. “Some of these individuals may have been minors at the time of their application process.”

Olivia Jade
Olivia Jade

Loughlin, who stars on Fuller House, faces felony charges of conspiracy to commit mail fraud and honest services mail fraud.

On Wednesday, Loughlin was arrested after taking an overnight flight from Canada, where she had reportedly been filming. (Giannulli appeared in federal court on Tuesday and was released after posting a $1 million bond.)

RELATED: Could Lori Loughlin and Felicity Huffman Serve Prison Time for Alleged College Admissions Scam?

Also on Wednesday, the judge specified that the actress will be allowed to speak to her two daughters and husband about the charges, but to no one else connected with the case, reports Variety.

Just hours after she was taken into custody, Loughlin made her first appearance in federal court in Los Angeles where a judge set her bond at $1 million, according to the Associated Press, the Orange County Register and the San Gabriel Valley Tribune.

Loughlin is permitted to travel to British Columbia, where she has filming projects in Vancouver, but must surrender her passport in December, according to the O.C. Register. She will also face charges in Boston Federal Court on March 29, according to Variety.

An attorney for Loughlin did not immediately respond to PEOPLE’s request for comment. A representative for Loughlin had no comment.