Senior forward Larry Polec hit four free throws in the last 23 seconds as Michigan State held off a rally by No. 15 Indiana and beat the Hoosiers, 77-74, yesterday in a Big Ten college basketball game in Bloomington, Ind.

It was Indiana's seventh consecutive conference loss at home, going back to last season. The Hoosiers are 0-2 in the Big Ten and 8-4 overall. Michigan State is 1-1, 10-2.

The Spartans, ahead, 39-37, at halftime, had built their lead to 57-42 with 14:44 remaining. Indiana came back with a 22-9 scoring run over the next 10 minutes and tied the game at 70 on Steve Alford's three-point play with 1:35 remaining.

Carlton Valentine, who led the Spartans with 21 points, then made two free throws to give Michigan State the advantage. The Spartans made five of six free throws in the last 23 seconds, including Polec's four and one by Darryl Johnson, to seal the win.

"I have to give Indiana credit for the great comeback," said Spartans Coach Jud Heathcote. "We were keying the zone to try to stop Alford. I told the team before the game that we couldn't let him get 30 points or we'd get beat. He had 23, but he had to work hard to get those." USC 75, Oregon 60:

Greg Kimble and Derrick Dowell scored 22 points apiece and Southern Cal pulled away late in a Pacific-10 victory in Inglewood, Calif.

Tied, 28-28, at the half, Southern Cal led, 38-36, when Kimble converted a three-point play that put the Trojans up by five with 13:44 remaining. Dowell made another three-point play 1 1/2 minutes later and Southern Cal was up, 44-38.

The victory improved Southern Cal's record to 6-5, 1-1 in the Pac-10. Oregon drops to 5-7, 0-2. Catholic 60, Allentown 57:

Rob McCarry scored a game-high 27 points to lead the Cardinals (3-6) in the consolation game of the Moravian College tournament in Bethlehem, Pa. With four minutes remaining, Allentown (1-10) led, 51-49, but Ed Larkin scored to tie it.