The state of Georgia yesterday paid $1.08 million to Jan Kemp and affirmed its agreement to reinstate her at the University of Georgia in settlement of a lawsuit that exposed preferential academic treatment of athletes and set off events that led the school's president to resign.

"I love the University of Georgia. I love the years I've worked there and I'm looking forward to returning," Kemp told reporters at Atlanta's federal courthouse after signing the settlement papers and receiving her check at U.S. District Judge Horace Ward's office.

Under terms of the agreement, she will rejoin the university faculty July 1 as co-coordinator of the English section of the Developmental Studies Program at a salary of $30,356, and will be given a new period of seven years to earn tenure. She will not report to university vice presidents Virginia Trotter or Leroy Ervin, the two defendants in her suit.

She received $79,681.65 for lost wages, $1 for loss to professional reputation, $400,000 punitive damages and the rest for mental distress . . .

Louisiana State University Athletic Director Bob Brodhead, ordered to work off his federal wiretap conviction with 200 hours of community service, will be assigned to organize recreational activities for state prisoners, probation officials said. Brodhead pleaded guilty April 18 to conspiring to eavesdrop on NCAA investigators . . .

Much-traveled 7-foot-1 Tito Horford, who briefly enrolled at LSU last year, will be eligible to play for the University of Miami basketball team at the end of the first semester next December, the NCAA Eligibility Committee ruled . . .

Boyd McWhorter will announce his retirement today after almost 14 years as commissioner of the Southestern Conference. He will be 63 Thursday.

The presidents of the SEC's 10 schools will choose a successor, with athletic directors Roy Kramer of Vanderbilt and Cecil Ingram of Florida State among those likely to be considered. Ingram is a former SEC associate commissioner.