Inside Lori Loughlin's family's reaction to college bribery scandal: 'It's been mortifying'

Though Lori Loughlin and her family have yet to publicly address their alleged connection to the massive college admissions bribery scheme announced this week, sources close to the famous family are shedding light on how they're coping with their lives being upturned by the scandal.

Loughlin and her husband, Mossimo Giannulli, allegedly paid $500,000 for their daughters, Isabella Rose, 20, and Olivia Jade, 19, to get into the University of Southern California on the false pretenses that they were recruited for the school's crew team. Both parents were arrested this week and subsequently released on $1 million bonds.

SEE ALSO: Felicity Huffman, Lori Loughlin and others sued for $500 billion

In addition to professional fallout from the scandal, which has so far included Loughlin being dropped from the Hallmark Channel and Jade being dropped by Sephora, the family has experienced some major personal turmoil as a result of the situation, too.

"Lori and Mossimo are finding out quickly who their real friends are," an insider told People. "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. Their friends are shocked at the allegations."

15 PHOTOS
Lori Loughlin and husband Mossimo Giannulli together
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Lori Loughlin and husband Mossimo Giannulli together
LOS ANGELES, CA - APRIL 18: Designer Mossimo Giannulli and actress Lori Loughlin attend LACMA's 50th Anniversary Gala sponsored by Christie's at LACMA on April 18, 2015 in Los Angeles, California. (Photo by Donato Sardella/Getty Images for LACMA)
BEVERLY HILLS, CA - JUNE 03: Lori Loughlin and Mossimo Giannulli attend 6th Annual Kidstock Music And Arts Festival Sponsored By Hudson Jeans at Greystone Mansion on June 3, 2012 in Beverly Hills, California. (Photo by Donato Sardella/WireImage)
MALIBU, CA - APRIL 21: Designer Mossimo Giannulli and actress Lori Loughlin attend the Malibu Lumber Yard grand opening held at the Malibu Lumber Yard on April 21, 2009 in Malibu, California. (Photo by John Shearer/WireImage)
BEVERLY HILLS, CA - FEBRUARY 20: Actress Lori Loughlin (L) and husband Mossimo Giannulli attend the Saks Fifth Avenue's Unforgettable Evening cocktail reception benefiting Entertainment Industry Foundation's (EIF) Women's Cancer Research Fund held at the Beverly Wishire Hotel on February 20, 2008 in Beverly Hills, California. (Photo by Donato Sardella/WireImage)
LOS ANGELES, CA - OCTOBER 28: Lori Loughlin and Mossimo attend Louis Vuitton Gala Celebrating the Takashi Murakami Exhibition at Geffen Contemporary at Moca on October 28, 2007 in Los Angeles, CA. (Photo by BRIAN LINDENSMITH/Patrick McMullan via Getty Images)
John Stamos and Lori Loughlin during Target Hosts LA Fashion Week Party for Designer Mossimo Giannulli - Inside at Area in West Hollywood, California, United States. (Photo by L. Cohen/WireImage for LaForce and Stevens)
John Stamos, Lori Loughlin and Mossimo Giannulli during Target Hosts LA Fashion Week Party for Designer Mossimo Giannulli - Inside at Area in West Hollywood, California, United States. (Photo by L. Cohen/WireImage for LaForce and Stevens)
Mossimo Giannulli and Lori Loughlin during Target Hosts LA Fashion Week Party for Designer Mossimo Giannulli at Area in Los Angeles, California, United States. (Photo by L. Cohen/WireImage for LaForce and Stevens)
Lori Loughlin and Mossimo during Saks Fifth Avenues Unforgettable Evening Benefitting EIFs Womens Cancer Research Fund at Regent Beverly Wilshire Hotel in Beverly Hills, California, United States. (Photo by Donato Sardella/WireImage for Entertainment Industry Foundation)
Lori Loughlin and Mossimo during 30th Anniversary Party for Hello Kitty Presented by SANRIO and Target - Pink Carpet at Raleigh Studios in Hollywood, California, United States. (Photo by J. Vespa/WireImage for Sanrio, Inc)
Mossimo Giannulli & Lori Loughlin during Mossimo's New Collection Celebration at Moomba in West Hollywood, California, United States. (Photo by J. P. Aussenard/WireImage)
Lori Loughlin & Mossimo during Marc Anthony Pilots Jaguar's Tribute To Style - March 18, 2001 at Barker Hangar in Santa Monica, California, United States. (Photo by SGranitz/WireImage)
381656 06: Designer Mossimo Giannulli with actress wife Lori Loughlin, left, and actress Valerie Bertinelli attend a party to launch the famed sportswear designer Mossimo Giannulli Collection November 9, 2000 at The Drive-In Studios in New York City. (Photo by George DeSota/Getty Images)
Mossimo Giannulli & Lori Loughlin during 14th Carousel of Hope Ball for Barbara Davis Center for Diabetes at Beverly Hills Hilton Hotel in Beverly Hills, California, United States. (Photo by SGranitz/WireImage)
Lori Loughlin & Mossimo during An Evening of Song & Spirit A Benefit For Gaian Yoga For Life at Private House in Bel Air, California, United States. (Photo by SGranitz/WireImage)
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"This issue is shocking and greatly saddens many people," another source told People. "I've heard she is devastated, and the whole family wants to hide from the world. People have sort of been in awe of how Lori has been able to do it all and articulate so well."

The first source also explained that the couple's hopes for their daughters were always different from those of theirs. While Loughlin and Giannulli, who were described as "very competitive parents" who "like to show off," desperately wanted their children to go to USC, Olivia and Isabella were never particularly passionate about their educations, with Olivia instead being focused on growing her social media and YouTube presence.

"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," the insider explained. "They attended school because their parents made them. Their focus was never about getting straight As. 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."

SEE ALSO: Loughlin and Huffman's courtroom sketch artist speaks out

41 PHOTOS
Olivia Jade on Instagram
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Olivia Jade on Instagram
love these people 💓 birthday vlog went up on Tuesday 🤗 www.youtube.com/oliviajadebeauty
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back home from an amazing #TRESnyfw w @tresemme! brought my fave products home with me (including micro mist level 2)❤️ #trespartner
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TMZ reported on Thursday that the sisters have decided that they will withdraw from USC in an effort to avoid being expelled and dodge the "vicious bullying" that they think they'd be subject to if they were to return to school.

A source close to Isabella and Olivia told ET Online that they're "both devastated by what's happened. It's been mortifying and frightening for them. They love their parents dearly and realize they only wanted the best for them, but they are starting to realize how very serious the charges [against] their parents are at their expense."

In addition, the social media influencers "never expected their parents to be charged for any crime, let alone one related to them. They've always seen themselves as a good, honest family that works hard and follows the rules, but everything changed overnight. The reality of all of this has been devastating."

Though the Isabella and Olivia were not charged in connection to the scheme, it's still unclear whether or not either of them explicitly knew about the bribery scheme. That being said, both women allegedly posed for staged photos on rowing machines to make themselves look like more legitimate rowing recruits, despite the fact that neither participated in crew in high school.

SEE ALSO: Why we likely won't see Felicity Huffman and Lori Loughlin's mug shots

The ET insider also noted that, though Olivia had very little attachment to going to college and had said as much in videos posted to her public YouTube page, the reported decision to pull both sisters out of USC is much more tough for her older sister.

"Bella had many close friends at USC and had built a life at the school," the source said. "They are both so worried about their parents and the repercussions. They realize how serious the charges are and feel helpless." 

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Lori Loughlin with her daughters
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Lori Loughlin with her daughters
BEVERLY HILLS, CA - FEBRUARY 28: Olivia Jade Giannulli and Lori Loughlin attend WCRF's 'An Unforgettable Evening' at the Beverly Wilshire Four Seasons Hotel on February 28, 2019 in Beverly Hills, California. (Photo by Emma McIntyre/Getty Images for WCRF)
BEVERLY HILLS, CA - FEBRUARY 28: (L-R) Olivia Jade Giannulli, Lori Loughlin and Isabella Rose Giannulli attend WCRF's 'An Unforgettable Evening' at the Beverly Wilshire Four Seasons Hotel on February 28, 2019 in Beverly Hills, California. (Photo by Rachel Murray/Getty Images for WCRF)
WEST HOLLYWOOD, CA - DECEMBER 14: (L-R) Heidi Anne Pillsbury, Olivia Jade, Lori Loughlin and Beth Hayes Giannulli celebrate the Olivia Jade X Sephora Collection Palette Collaboration Launching Online at Sephora.com on December 14, 2018 in West Hollywood, California. (Photo by Gabriel Olsen/Getty Images for Sephora Collection)
WEST HOLLYWOOD, CA - DECEMBER 14: (L-R) Olivia Jade Giannulli, Lori Loughlin and Isabella Rose Giannulli celebrates the Olivia Jade X Sephora Collection Palette Collaboration Launching Online at Sephora.com on December 14, 2018 in West Hollywood, California. (Photo by Gabriel Olsen/Getty Images for Sephora Collection)
WEST HOLLYWOOD, CA - DECEMBER 14: Lori Loughlin (L) and Olivia Jade Giannulli celebrate the Olivia Jade X Sephora Collection Palette Collaboration Launching Online at Sephora.com on December 14, 2018 in West Hollywood, California. (Photo by Gabriel Olsen/Getty Images for Sephora Collection)
LOS ANGELES, CA - MARCH 24: Lori Loughlin and Olivia Jade Giannulli are seen on March 24, 2018 in Los Angeles, California. (Photo by Hollywood To You/Star Max/GC Images)
BEVERLY HILLS, CA - FEBRUARY 27: Actress Lori Loughlin and daughter Olivia Jade Giannulli attend Women's Cancer Research Fund's An Unforgettable Evening Benefit Gala at the Beverly Wilshire Four Seasons Hotel on February 27, 2018 in Beverly Hills, California. (Photo by Axelle/Bauer-Griffin/FilmMagic)
BEVERLY HILLS, CA - FEBRUARY 27: Lori Loughlin, Olivia Jade Giannulli arrives at the The Women's Cancer Research Fund's An Unforgettable Evening Benefit Gala at the Beverly Wilshire Four Seasons Hotel on February 27, 2018 in Beverly Hills, California. (Photo by Steve Granitz/WireImage)
LOS ANGELES, CA - OCTOBER 25: Lori Loughlin and Olivia Jade attend the PrettyLittleThing By Kourtney Kardashian Launch on October 25, 2017 in Los Angeles, California. (Photo by JB Lacroix/ WireImage)
LOS ANGELES, CA - OCTOBER 04: Olivia Jade and mother Lori Loughlin attend People's 'Ones to Watch' at NeueHouse Hollywood on October 4, 2017 in Los Angeles, California. (Photo by C Flanigan/WireImage)
LOS ANGELES, CA - AUGUST 13: (L-R) Isabella Giannulli, Lori Loughlin and Olivia Giannulli arrive at the Teen Choice Awards 2017 at Galen Center on August 13, 2017 in Los Angeles, California. (Photo by Axelle/Bauer-Griffin/FilmMagic)
LOS ANGELES, CA - AUGUST 13: (L-R) Isabella Giannulli, Lori Loughlin and Olivia Giannulli arrives at the Teen Choice Awards 2017 at Galen Center on August 13, 2017 in Los Angeles, California. (Photo by Steve Granitz/WireImage)
LOS ANGELES, CA - AUGUST 13: (L-R) Isabella Giannulli, Lori Loughlin and Olivia Giannulli attend the Teen Choice Awards 2017 at Galen Center on August 13, 2017 in Los Angeles, California. (Photo by Kevin Mazur/Getty Images)
BEVERLY HILLS, CALIFORNIA - JULY 27: Bella Loughlin, Actress Lori Loughlin and Olivia Loughlin arrive for the 2017 Summer TCA Tour - Hallmark Channel And Hallmark Movies And Mysteries on July 27, 2017 in Beverly Hills, California. (Photo by Greg Doherty/WireImage)
BEVERLY HILLS, CA - JULY 27: Actress Lori Loughlin (C) and her daughters Isabella Rose (L) and Olivia Jade Giannulli (R) attend the Hallmark Channel And Hallmark Movies And Mysteries 2017 Summer TCA Tour at on July 27, 2017 in Beverly Hills, California. (Photo by Paul Archuleta/FilmMagic)
WEST HOLLYWOOD, CA - APRIL 21: Olivia Jade and Lori Loughlin attend Marie Claire's Fresh Faces event at Doheny Room on April 21, 2017 in West Hollywood, California. (Photo by Jason LaVeris/FilmMagic)
WEST HOLLYWOOD, CA - APRIL 21: Olivia Jade and Lori Loughlin attend Marie Claire's Fresh Faces event at Doheny Room on April 21, 2017 in West Hollywood, California. (Photo by Jason LaVeris/FilmMagic)
WEST HOLLYWOOD, CA - APRIL 21: Actress Lori Loughlin and Olivia Jade attend Marie Claire's 'Fresh Faces' celebration with an event sponsored by Maybelline at Doheny Room on April 21, 2017 in West Hollywood, California. (Photo by Donato Sardella/Getty Images for Marie Claire)
LOS ANGELES, CA - MARCH 23: Actress Lori Loughlin with her daughters Olivia Jade Giannulli and Isabella Rose Giannulli are seen on March 23, 2017 in Los Angeles, California. (Photo by Hollywood To You/Star Max/GC Images)
LOS ANGELES, CA - FEBRUARY 16: Lori Loughlin (C) and daughters Isabella Giannulli (L) and Olivia Giannulli attend the premiere of Netflix's 'Fuller House' on February 16, 2016 in Los Angeles, California. (Photo by JB Lacroix/WireImage)
LOS ANGELES, CA - FEBRUARY 16: Lori Loughlin (C) and daughters Isabella Giannulli (L) and Olivia Giannulli attend the premiere of Netflix's 'Fuller House' on February 16, 2016 in Los Angeles, California. (Photo by JB Lacroix/WireImage)
LOS ANGELES, CA - DECEMBER 10: Actress Lori Loughlin and Olivia Jade Giannulli attend the Premiere of Awesomeness Films' 'Snervous Tyler Oakley' at the Regency Bruin Theatre on December 10, 2015 in Los Angeles, California. (Photo by Jesse Grant/Getty Images)
LOS ANGELES, CA - NOVEMBER 17: (L-R) Patricia Riley, Bailee Madison, Lori Loughlin, Olivia Giannulli and Isabella Giannulli pose for a photo prior to the World Premiere Screening of 'Northpole: Open for Christmas' at The Grove on November 17, 2015 in Los Angeles, California. (Photo by Joe Scarnici/Getty Images)
BEVERLY HILLS, CA - JULY 29: Actress Lori Loughlin (R) and daughter Olivia Jade Giannulli attend the Summer TCA Tour - Hallmark Channel and Hallmark Movies And Mysteries at a private residence on July 29, 2015 in Beverly Hills, California.(Photo by Jeffrey Mayer/WireImage)
LOS ANGELES, CA - NOVEMBER 04: Lori Loughlin, Isabella Giannulli and Olivia Giannulli arrive for the Hallmark Channel Presents 'Northpole' Premiere Screening at La Piazza Restaurant on November 4, 2014 in Los Angeles, California. (Photo by Gabriel Olsen/FilmMagic)
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