The University of San Francisco, which dropped its basketball program a year ago because of a series of brushes with the NCAA, will return to the sport in the fall of 1985, but at a reduced level and under strict guidelines.

The Rev. John Lo Schiavo, president of the university, announced that the school's board of trustees had agreed to bring back the program, but under the guidance of a new athletic director, replacing Bill Fusco.

Lo Schiavo said that admissions standards for athletes will be the same as for other students and that while the school will recruit gifted basketball players, they must be students first and athletes second.

He said recruiting will be limited to the region and that USF will play a schedule against teams in California and nearby states . . .

George Washington third baseman Marc Heyison faces a big decision this week: should he stay with the Colonials for his senior season or should he start a baseball career with the Baltimore Orioles, who picked him ninth in Monday's draft? Heyison had a .461 average, .855 slugging percentage and hit seven triples this year, but his father said the 5-10, 175-pound junior from Silver Spring may not be ready to sign. "Right now, Marc is very confused," said the senior Heyison."I think a lot will depend on what kind of contract the Orioles are willing to offer Marc."