COS from H1B to F2 or F1?

[tcfannin]

I am on H1B status and have been laid off on Oct 30th 2009. I got severance pay for the month of November and i have pay stubs. The employer has not yet notified USCIS to revoke the H1, and it may be done in mid December. My H1 started in October 2006 and it was renewed till October 2012 by my previous employer.

The two options i am consedering are:
- My spouse is on H4, so she will apply for COS to F1 and i will simultaneously apply for COS to F2. One concern i have about this is that since spouses F1 is not already approved my COS to F2 may be rejected.
- I can return to college to finish my degree so i can do COS to F1. In this case i would like my spouse to do COS to F2 simultaneously. Is this safer option than the first option?

Can i legally stay in this country during the processing of my COS?
In future if i find an employer who can sponsor my H1B which will be better, COS from F2 to H1 or F1 to H1?

Thanks in advance.

[frostrated]

you cannot do a COS from H to F2 while COS from H to F1 is still pending. Also, you need to show proof of funds to support the F2 in addition to showing the funds for F1. If you find an employer who will sponsor a H1B, it does not matter if you do from F2 to H1 or F1 to H1. but if you intend to do from F1 to H1, then the IO might look at your application suspiciously as you have not yet completed your degree and might raise an RFE which might damage your application. BTW, since you already have an approved H1B number, you will not be subject to the quota restrictions.

[tcfannin]

Since you say COS from H1 to F2 cannot be done while H4 to F1 is pending, the only option i have will be to do H1 to F1. Please advice if i apply for COS from H1 to F1 before December 15th will i have a gap in legal status to stay in US? I have pay stubs till November end.
Can i apply for COS from H4 to F2 for my spouse while my H1 to F1 is pending?

[frostrated]

a COS to F2 status can be done only when there is an approved F1 status. If you are thinking of getting into F1 status, get in touch with your school and have them process the COS immediately. Do not mention that you dont have a job. Tell them that you want to come back to school immediately.
Otherwise, have your wife transfer from H4 to F1, and once the F1 comes through, apply for COS from H1 to F2.