Actress Lori Loughlin, who faces the very real possibility of jail time for her alleged involvement in the college admissions scam, is “freaking out” about potentially going to jail, E! Online reports, citing a source.

Unlike Felicity Huffman, another actress charged in the large-scale scam, Loughlin opted not to enter a guilty plea to the initial charges. Subsequently, she was hit with an additional charge of money laundering conspiracy, as we reported this week.

E! reports that Loughlin and her designer husband, Mossimo Giannulli, along with 14 other parents who were hit with the additional charge, now face a maximum sentence of 40 years in prison — 20 years for each charge.

Loughlin reportedly was convinced initially that she would never see the inside of a prison cell.

“She has been in complete denial and thought maybe she could skate by,” said E!’s source. “She refused to accept any jail time and thought the DA was bluffing. She was adamant she wouldn’t do any jail time.”

But the reality of her situation appears to have settled in, especially after Hallmark severed ties with Loughlin, preventing her from enjoying the diversion of work.

“Lori is finally realizing just how serious this is,” says the source. E! adds that Loughlin is reportedly “beating herself up for not accepting the initial deal.”

Adds the source: “She is seeing the light that she will do jail time and is freaking out.”