In the wake of thecollege admissions scandal, a source says thatLori Loughlinand 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 theFuller Houseactress 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 thatOlivia Jadeand Isabella Rose “are scared about what will happen next.”

From left: Olivia Jade Giannulli, Lori Loughlin and Isabella Rose Giannulli.Gabriel Olsen/Getty

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

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.

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 USCwomen’s rowing roster.)

Mossimo Giannulli and Lori Loughlin.Donato Sardella/Getty Images for LACMA

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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.”

“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.)

“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.”

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Loughlin, who stars onFuller 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.)

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, reportsVariety.

Just hours after she was taken into custody, Loughlin made her first appearance in federal court in Los Angeles where ajudge set her bond at $1 million, according to theAssociated Press, theOrange County Registerand theSan 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 theO.C. Register. She will also face charges in Boston Federal Court on March 29, according toVariety.

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

source: people.com