The eighth module in a 17-module self-instructional program on student financial aid administration (designed for novice student financial aid administrators and other personnel) focuses on need analysis. It provides an introduction to the management of federal financial aid programs authorized by the Higher Education Act Title IV. After completing the module, the user will be able to describe the historical development of need analysis and the origin of the Pell Grant and Congressional Methodology (CM) approaches, identify the similarities and differences between these two approaches, and describe the categories for independent students and dependent students. Information on need analysis includes the following: definition, principles, and history of need analysis; current need analysis procedures; dependency status; the formulas and their components; and recalculation and adjustment of the EFC by the financial aid administrator. A pre-test, post-test, glossary, and acronyms are included. The following appendixes are included: (1) case studies: need analysis using the Pell Grant and CM methodology formulas; (2) sample need analysis output documents (Student Aid Report, FAFNAR, and Family Financial Statement confirmation report/CFAR); (3) dependency override; (4) recalculating the Family Contribution for periods of enrollment other than 9 months; and (5) veterans educational benefits: treatment as a resource and estimated financial assistance. Tables are included. Contains five references. (SM)