Lori Loughlin's Daughters Are Struggling with Her Jail Sentence: 'It's a Nightmare,' Source Says

"It's just a nightmare for them," a source tells PEOPLE of the couple's daughters — Olivia Jade and Isabella Rose

Lori Loughlin and her husband, fashion designer Mossimo Giannulli, are now both in jail for their role in last year's college admissions scandal, but a Loughlin source says it's the couple’s daughters —YouTube star Olivia Jade Giannulli, 21, and Isabella Rose Giannulli, 22 — who may be struggling the most.

"It's just a nightmare for them," the source tells PEOPLE in this week's issue. "They were very upset when they said goodbye to Lori. But to have both of their parents now in prison at the same time is very upsetting."

Full House star Loughlin, 56, reported to FCI-Dublin in Northern California on Oct. 30 to serve a two-month sentence after pleading guilty back in May to conspiracy to commit wire and mail fraud. Then, on Nov. 19, Giannulli, 57, was booked into federal prison in Lompoc, near Santa Barbara, where he’s serving five months on two fraud charges.

"They are beyond worried," the source adds of Olivia and Isabella. "They can't wait to have their mom home in December, though. They try to focus on this."

Olivia Jade, Lori Loughlin and Bella Giannulli
From left: Olivia Jade, Lori Loughlin and Bella Giannulli in February 2019. AFF-USA/Shutterstock

On May 22, Loughlin admitted to one count of conspiracy to commit wire and mail fraud, while husband Mossimo Giannulli pleaded guilty to one count of conspiracy to commit wire and mail fraud and one count of honest services wire and mail fraud.

For more about the impact of Lori Loughlin's incarceration on her family, pick up this week's issue of PEOPLE.

According to the criminal complaint against them, the couple was accused of paying $500,000 to Rick Singer and Key Worldwide Foundation to falsely designate their daughters as recruits to the University of Southern California crew team, even though neither ever participated in the sport.

Loughlin is expected to be released Dec. 28 (though a source tells PEOPLE she hopes to go home a few days early, before Christmas) while her husband is slated to be freed in April.

In the meantime, a legal source says Loughlin is holding up well. “She was a little weepy on her first night there, but she pulled herself together quickly. She hasn’t had any specific problems. No one is bullying her.

RELATED VIDEO: Lori Loughlin Is ‘Terrified’ About Going to Prison amid COVID-19 Pandemic: Source

"She’s using this time to focus on herself, but she’s also interested in hearing the stories of the other inmates,” the source says. “She realizes she’s no better and no worse than any of them. Lori is resolved to finish her sentence with her head held high.”

Additional reporting by Pernilla Cedenheim
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