The link was interesting but obviously there is more information available. I base my response mostly on the link'sinterview's one sentence about "My Old School". Do a Google search on "My Old School" and Steely Dan and you'll find a bunch of stuff.
It seems that Fagan's and Becker's old school is indeed implied by "Annandale". Both of the Steely Dan guys went to Bard College in Annandale-On-Hudson in New York. Or maybe they mean "Annandale" in northern Virginia. After all, they do mention the College of William and Mary, which is in Williamsburg, Virginia. But many New Yorkers go to school there (or did in my day).
It seems that Fagan's and Becker's old school is indeed implied by "Annandale". Both of the Steely Dan guys went to Bard College in Annandale-On-Hudson in New York. Or maybe they mean "Annandale" in northern Virginia. After all, they do mention the College of William and Mary, which is in Williamsburg, Virginia. But many New Yorkers go to school there (or did in my day).