Sister Margaret Finnegan, 61, a vice president and associate professor of phsychology at Trinity College here, died Wednesday at Providence Hospital. She had a stroke on Aug. 15.

Sister Margaret, who was born in Brooklyn, N.Y., entered the congregation of the Sisters of Notre Dame of Namur in Ilchester, Md., in 1939. She made her final profession in 1947.

She earned a bachelor's degree in the classics at Trinity College and master's and doctor's degrees in psychology at Catholic University. She taught in Pennsylvania and at the Trinity Preparatory School in Ilchester before being appointed to the faculty of Trinity College in 1959.

In addition to her teaching duties, Sister Margaret served as academic dean of Trinity from 1970 to 1974. During this period, she helped implement reforms that allow individual students to take courses to meet their particular needs. She was named a vice president of the college in 1979 and also served on its board of directors.

Survivors include a sister, Sister Regina Finnegan, S.N.D., the principal of the Academy of Notre Dame in Villanova, Pa.

The family suggests that expressions of sympathy be in the form of contributions to the Trinity College Scholarship Fund, Washington D.C.