His decision did not seem to matter to the screaming, placardcarrying students at the rally. But Ole Miss alumni, concerned about a rumor that university officials planned to drop the Confederate flag and substitute the state flag, protested.

Crymes Pittman, a lawyer in Jackson, Miss., the president of the Ole Miss alumni association there, said ''nobody is up in arms about John Hawkins's decision,'' adding that 150 alumni at a breakfast in Jackson ''agreed the student had a right to do what he thought was right for him.''

''There is always an interest in holding on to traditions, but we recognize that some changes are inevitable,'' he continued. ''When I went to Ole Miss, I waved the Rebel flag and thought nothing of it, but that was another era, when only whites were students. Now there is a different situation and different needs. And if John Hawkins wants to wave the state flag, or something other than the Rebel flag, I can understand it.'' Meredith Enrollment Recalled

Nearly 20 years ago, on Oct. 1, 1962, James H. Meredith, escorted by Federal marshals, became the first black student at the University of Mississippi. His enrollment came after 3,000 troops put down student riots in which two people died.

William Ray, president of the Ole Miss student body, is concerned that the flag controversy may suggest that racial attitudes are the same as they were two decades ago, and that many black and white prospective students may stay away.