Lori Loughlin reportedly kept a close eye on the college admissions scandal proceedings as fellow starlet and fraud conspirator Felicity Huffman was sentenced to 14 days in prison by a federal judge in Boston.

Loughlin, who is accused of spending $500,000 in bribes to have her two daughters admitted to the University of California, is 'processing' what Huffman's verdict could mean for her own trial.

A source told PEOPLE: 'Lori is aware of Felicity's sentence, and is processing what that means for her. Her only move now is to take this to court and to prove that she is not guilty of what she's charged with.

'If she’s found guilty, she will go to jail; that is clear.

'And if another deal is offered to her, which I don’t think it will be, she will go to jail. Her only chance of avoiding jail is to beat these charges.'

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Full House star Lori Loughlin is caught up in the college bribery scandal. She and her husband, fashion designer Mossimo Giannulli, have both pleaded not guilty. Loughlin is seen center while Giannulli is seen walking behind her at right in Boston on August 27

'Lori is a smart woman; she understands that. She’s scared and upset, but she’s resolved to be strong and to fight this. She will do what she has to do to protect herself and her family.'

The source told PEOPLE that Loughlin now regrets not taking the original plea deal, but at the time didn't realize how serious her crime was.

'She didn’t understand the entire nature of the charges against her, and she wasn’t even sure if or how she had broken the law.'

'It was very early, and she didn’t have all the information that she has now. Based on what she understood at the time, she made the best choice for herself,' the source said.

Desperate housewife: Felicity Huffman (above arriving in court Friday with husband William Macy) was sentenced to 14 days in federal prison for paying $15,000 to have her daughter's SAT falsified by a proctor

'Now there is no deal on the table, and she has to have faith that the courts and the prosecution will move fairly and not make an example out of her.'

But Loughlin's not guilty plea and her hefty bribe, compared to Huffman's guilty plea and considerably cheaper amount, may be worse for her in the long run.

CNN legal analyst Elie Honig said Huffman's sentence is 'really bad news' for Loughlin.

Honing said: 'I mean, this is the absolute floor in this case. This is the low end of conduct, the low end of the dollar amount. She was contrite from the start. So everyone else in this case has got to be shaking in their boots right now.'

Honing called Huffman's ruling a 'symbolic sentence' which was meant to send a clear message to the other defendants that 'wealth and privilege can't get you out of this.'

If convicted, Loughlin faces a maximum of 40 years in prison, though legal observers doubt that a judge would impose that harsh of a sentence.

Loughlin and her husband Mossimo Giannulli, will be seen in court on October 2 for a status hearing regarding their case.

Mossimo Giannulli (left) and Lori Loughlin (right) are still in the pre-trial phase of their case for the bribery scandal in which they paid $500,000 to get their two daughters into the University of California

At the request of Loughlin (middle), daughters Olivia Jade (left) and Isabella (right) fraudulently posed for photos suggesting they were members of the university's crew team

FELICITY HUFFMAN STATEMENT I accept the court’s decision today without reservation. I have always been prepared to accept whatever punishment Judge Talwani imposed. I broke the law. I have admitted that and I pleaded guilty to this crime. There are no excuses or justifications for my actions. Period. I would like to apologize again to my daughter, my husband, my family and the educational community for my actions. And I especially want to apologize to the students who work hard every day to get into college, and to their parents who make tremendous sacrifices supporting their children. I have learned a lot over the last six months about my flaws as a person. My goal now is to serve the sentence that the court has given me. I look forward to doing my community service hours and making a positive impact on my community. I also plan to continue making contributions wherever I can well after those service hours are completed. I can promise you that in the months and years to come that I will try and live a more honest life, serve as a better role model for my daughters and family and continue to contribute my time and energies wherever I am needed. My hope now is that my family, my friends and my community will forgive me for my actions. Advertisement

Felicity Huffman issued a public apology on Friday after she was sentenced to two weeks in federal prison for paying to inflate her daughter's college admission test scores.

'I accept the court's decision today without reservation,' the Desperate Housewives star wrote in her statement.

'I have always been prepared to accept whatever punishment Judge [Indira] Talwani [of the United States District Court for the District of Massachusetts] imposed.

'I broke the law. I have admitted that and I pleaded guilty to this crime.

'There are no excuses or justifications for my actions. Period.

'I would like to apologize again to my daughter, my husband, my family and the educational community for my actions.

'And I especially want to apologize to the students who work hard every day to get into college, and to their parents who make tremendous sacrifices supporting their children.'

She added: 'I have learned a lot over the last six months about my flaws as a person. My goal now is to serve the sentence that the court has given me.

'I look forward to doing my community service hours and making a positive impact on my community.

'I also plan to continue making contributions wherever I can well after those service hours are completed.

'I can promise you that in the months and years to come that I will try and live a more honest life, serve as a better role model for my daughters and family and continue to contribute my time and energies wherever I am needed.

'My hope now is that my family, my friends and my community will forgive me for my actions.'

In addition to her 14-day prison sentence, Huffman was also sentenced to a year of probation for paying a five-figure bribe in exchange for a proctor falsifying her daughter's standardized aptitude test to get the teen a higher score.

The actress, 56, addressed the court just moments before she learned her fate, breaking down in tears as she said: 'I have inflicted more damage than I could've ever imagined.'

She then admitted her guilt once more and told the judge her actions were 'frightened, stupid and so wrong,' and added that she deserved whatever sentence was handed down.

Foreshadow: Huffman's offense was the least grievous of the parents who have been indicted, and prison time for her would likely mean prison time for the 33 other parents