Expired J1 Visa

I was on a J1 visa (fortunately no 2year residency requirement attached)...Tried to change/extend my visa but couldnt get it done on time till it expired- March will make it 5months since my I-94 expired too. Tried getting I-20 but didnt get any positive result. It's much more like, it took longer than i expected. Is it possible i could re-apply for the F1 visa whilst here in the States when i get the I-20? How can I get myself back into status? What disadvantages do have to face? What penalties exist and what are my options?
Thanks for your concern.

You're already into an overstay that creates a three year period of ineligibility to reenter the United States. As I see it, as long as you remain in the U.S., all applying for a visa would do is highlight to the USCIS that you're unlawfully present in the United States.