When the folk music cafe Passim opened in 1969, Harvard was in the midst of its worst turmoil this century.

Passim filled a niche in Harvard Square: for residents, students and visitors searching for smoky basement folk music and late-night coffee, the cafe was practically a second home.

Twenty-five years later, the campus is much calmer, But the cafe is in serious financial trouble.

"Passim has been behind in rent to Harvard Real Estate for about a year. They owe $100,000 in back rent," said Stephen Baird, executive director of the Folk Arts Network, an umbrella group for non-profit arts groups in Massachusetts. "There are other debts too."

The network is trying to save the cafe. Benefit concerts to help Passim pay its debts are scheduled for January 19 and 20 at the Orpheum Theatre in Boston. The concerts will feature folk artists from across the nation.

If enough funds are collected and negotiations proceed smoothly, the Folk, Arts Network and the owners will turn Passim into a non-profit organization.

"There are a lot of people, aside from us, who want this to continue," said Passim's co-owner, Rae-Anne Donlin.

Scott Haywood, a representative for Harvard Real Estate, said the University-affiliated company in negotisting with cafe. But he would not comment further on the terms of the agreement or the debt owed by Passim.

'A Nice Place'

Boston Magazine named it "Best Folk Club" in 1990 and 1991 and the "Best Acoustic Hangout" in 1994.

Donlin said she hopes that the cafe will remain in its current location: on Palmer Street behind the Coop.

Many patrons interviewed yesterday said they would miss the cafe if it closed.

"It's a nice place to come on a cool day when you want a cup of coffee," said Colin C. Thorin, a Cambridge high school student.

"They always have really cool singers," said Leah T. Gadd, another Cambridge high school student.

Donlin expressed concern that the once-unique spirit of the Square has dissipated in recent years.

"[Passim is] cozy. It's real old, and that's nice," Donlin said. "It's nice to have a place that's intimate and not slick. There are fewer and fewer funky places like this."