H1 to F1 COS with H4 on passport

Hi All,

I am in a strange predicament. I searched in many forums but could not find an answer to my question.

I am on H4 now. A company interviewd me for a position and applied for H1 on my behalf with the promise of a project. My H1 got approved and my H1 start date is Oct 1st 2014.

Now the company tells me that the client project is not going to take off and they are marketing my resume to other clients. I am also searching for projects on my own but without success.
Before all this happened, I had applied to universities with the intention of doing my Masters and I also have an admit from a reputed one. Since my job search is going nowhere, I am planning to do a COS to F1 student visa.

Will my COS to F1 be denied if I initiate it after October 1st? (since I wont have any paystubs)

If my COS to F1 is still under processing when semester starts, will I be allowed to attend the university?

Thanks, in advance, for your replies.