NEW HAVEN, March 3--Lee Folger rallied from a 2-0 deficit and won the last three games to edge Harvey Sloan and give the varsity squash team a 5-4 victory over Yale, in the Payne Whitney Gymnasium today.

Playing number five, Folger tied the count at two games apiece, and eight-all in the fifth game, and then played the finest eight points of his career to win the game, 15 to 9, and give the varsity its first undefeated season since 1953.

Folger's dramatic victory gave the Crimson a 5-3 lead which soon became a 5-4 final score as Lanny Thomas at ninth singles dropped a 3-2 encounter to Bill Barlude in the last match of the day.

The varsity's first three wins came, as usual, from the top three positions, where Ben Heckscher, Cal Place, and Charlie MacVeagh won decisively over their opponents. MacVeagh was especially effective in disposing of Ed Meyer, 15-11, 15-14, and 15-12.

Heckscher picked up his usual victory at the top position, defeating Warren Zimmerman, 15-6, 15-11, 16-18, and 17-16. Heckscher let up slightly after the second game, and Zimmerman immediately seized the attack, forcing Heckscher to go all out in a late, fourth game effort. Place found similar difficulties at second singles as he had to pull out his match with an 18-16 win in the fourth game. He defeated Reid Williamson, 15-11, 15-13, 8-15, 18-16.

The other Crimson win went to Larry Sears, who topped Erwin Fleissner 15-9, 15-10, 11-15, 15-9, in the eighth position. Sears, Heckscher and Place, thus became the only varsity players to finish the season with undefeated records.

As was expected, most of Yale's victories came in the middle positions. Pete Milton lost to Ned Vare, 3 to 1, at fourth singles, Martin Heckscher bowed to Ron Ragen, 3 to 2, at sixth singles, and Roger Cortesi dropped a 3-0 encounter to George Unhock in the number seven position.