Lori Loughlin and Felicity Huffman Reportedly 'Haven't Fully Grasped' Severity of College Admissions Scandal

Lori Loughlin and Felicity Huffman were two of 50 people indicted in the recent college admissions scandal which accused parents, test proctors, athletic coaches and others of changing students' test results and designating them as athletic recruits to help them gain entrance into elite schools like Yale, Stanford, Georgetown and the University of Southern California.

Both women were arrested and released on bail, but new reports are claiming the stars aren't fully understanding the severity of the matter.

"Neither actress knew this would become so serious," a Huffman source told Us Weekly. "They haven't fully grasped the extent of their alleged crimes or the possibility of prison time."

Loughlin and her husband, Mossimo Giannulli, allegedly "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."

Huffman reportedly "made a purported charitable contribution of $15,000 to KWF to participate in the college entrance exam cheating scheme on behalf of her oldest daughter," and while she allegedly considered the plan again for her younger daughter, she did not go through with it a second time.

The women's money went to a fake charity set up by William Rick Singer that acted as a front for the scam. Singer has pleaded guilty to multiple charges.

Huffman's husband, William H. Macy, was not charged in the scheme, and a source told Us Weekly that the actor is "heartbroken" over the scandal.

"He's been in tears," a source said of the Shameless star, while a second insider close to Huffman said, "Felicity is crushed, and her husband is heartbroken."

"They were caught red-handed in this FBI sting, but they're both trying to justify it as something any parent would do for their child," the Huffman source added of the parents. "They're loving moms who allegedly broke the law by cheating the system, so now they could be considered criminals."

Another source told PEOPLE that many of Loughlin and Giannulli's friends have been distancing themselves from the couple in the wake of the allegations.

"Lori and Mossimo are finding out quickly who their real friends are," the source said. "It's not like they are the victims of a crime. They are the crime."

"Many of their friends don't want to be associated with them right now," the insider added. "Their friends are shocked at the allegations."

Loughlin, Giannulli and Huffman will all appear in court in Boston on March 29.

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