The use of estimated income to analyze financial need of applicants to the Basic Educational Opportunity Grant (BEOG) program was investigated. Attention was focused on: how well applicants estimate their income; reasons for errors in estimation, and whether applicants supplying income tax returns supply true versions. For 1,547 eligible BEOG applicants, estimates of income on a 1974-1975 supplemental application were compared were estimates made on regular 1975-1976 applications. Findings included: those with lower incomes were more accurate in estimating income, while those with higher incomes more often overestimated; the later in the year the supplemental application was filed, the more accurate the income estimate; accuracy was not related to the date in which the 1975 application was filed; and as the rate of accurate estimation increased, the size and the frequency of discrepancies became smaller. Compared to the first study, a followup study of individual cases found 11 percent fewer applicants who estimated accurately within $300. An additional study compared 1974-1975 estimated income with 1974 income tax return data for 2,840 eligible applicants and 1,750 ineligibles. Another analysis assessed the accuracy of estimation for applicants judged to be ineligible based on their supplemental BEOG applications. (SW)