The Fuller House star may be finally starting to realize the seriousness of the charges she's facing in connection to the massive college admissions bribery scheme, but she initially didn't think it was a big deal.
"It's just taking some time for it to sink in that what she was allegedly doing could be considered illegal", a source told People.
Deadline.com said Loughlin has been fired from When Calls the Heart and the channel's Garage Sale Mystery.
Loughlin was taken into custody by Federal Bureau of Investigation agents in Los Angeles on March 13 after being one of 50 people - including her husband, fashion designer Mossimo Giannulli, and actress Felicity Huffman - charged in a college admissions cheating scam, in which they allegedly paid money to fraudulently secure their children's admissions into elite universities.
And things got worse for the mother-of-two on Tuesday, after Loughlin and her husband we named among 14 other parents who were indicted on an additional charge of money laundering conspiracy.
Three episodes of the show aired before the scandal broke, causing the show to go on a brief hiatus.
Brian Bird, an executive producer on the series, late week thanked fans for their support during "this challenging time".
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"Hold up, you paid 500 grand for USC?". They know this is a high profile case and they want to make an example of the defendants'.
The Hallmark Channel dropped Lori after she and her husband Mossimo Giannulli, a fashion designer, were accused of paying $500,000 to get their two daughters, Olivia Jade and Isabella, into the University of Southern California on fake crew team scholarships.
Why? Because, the way Loughlin apparently saw it, she was just being a good mom!
They were charged with conspiracy to commit honest services mail fraud and mail fraud.
Huffman is scheduled to appear in Boston's federal court on May 24 to enter her plea. Last week, Loughlin and Giannulli rejected the very same plea agreement Felicity accepted.
In her first public comments since her arrest, Huffman on Monday took responsibility for her actions and said she would accept the consequences.
"Huffman, the 56-year-old Emmy victor that woke in ABC's" Desperate Housewives", was accused of spending $15,000 disguised as a charitable donation to have a proctor correct the replies for her daughter's Saturday.
Huffman, Loughlin and Giannulli have not publicly addressed the allegations against them.