The University will allow Iranian students who are unable to pay their tuition bills because of the political situation in Iran and the current mail embargo to finish the term despite outstanding debts, a spokesman for the International Office said yesterday.

The spokesman, who asked not to be identified, added that the office is encouraging the students to find on- or off-campus jobs this semester. The students may also receive loans and other forms of financial assistance from the University until they obtain funds from Iran.

Daniel Steiner '54, general counsel to the University, said yesterday the University became concerned with the financial state of the 42 Iranian students in the combined undergraduate and graduate schools seven to eight weeks ago.

He added that the University requested each school's faculty to survey their Iranian students in order to assess their financial problems.

Steiner said the survey revealed that there were "actually very few students with financial difficulties," but he asked the International Office to continue investigating the problem.

In the statement of University policy concerning Iranian students, the International Office spokesman said that "a good many" of the Iranian students at Harvard are facing financial setbacks.

Parviz Khalili '82, an Iranian student, said yesterday he did not have enough money to register at the beginning of the semester but an official at registration told him to see Archie C. Epps III, dean of students.

"He signed a paper and told me I could go to school while I waited for the money to come," Khalili said.

"I asked the University for help last semester, but my request got lost in red tape," Aziz Banayan, an Iranian student at the Graduate School of Design, said yesterday. "They told me the situation in Iran hadn't gotten bad enough yet," he added.

Banayan, who now holds a job at a transportation firm to pay his bills, said he knows many Iranian students who are also in bad financial straights. He added that his tuition should have been paid by rent on a building in Iran that his father had leased to the government under the Shah.

Alan M. Dershowitz, professor of Law, said yesterday that the Hebrew Immigrant Aid Society would probably aid Jewish students exiled from Iran.

Harvard Hillel is also considering a program to aid Jewish students from Iran, LeRoy Rabbani '80, a member of Hillel, said yesterday.

John M. Mojdehi, an Iranian graduate student, said yesterday the Iranian government was supposed to fund his education this year but could not because of the revolution.

"I scraped together all my savings to pay for this year's bill." Mojdehi said, adding, "The major question is whether the University is going to give scholarships to Iranian students next year."