Posted by: Gohtalo May 2, 2010
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I think you will be legal when your case is being processed if you file in time i mean before your H1B status expiry date but in case they deny you then you might be illegal.But again you will have appeal chances.So my suggestion to you will be
1)find job with another h1b sponsor which is very challenging looking at your time line but finically it might be the best options since u don't want to pay thousands of dollars to university since u already have got one and earned the job with it
2)Apply for I-20 immediately to the colleges that gives OPT and file AOS(i539 adjustment of states)
Also if you maintain some status you will always have options of going back to H1B and work since you will have plenty of time to research the job and look for sponsorship than continue working on assignments in university