<p>FAFSA does not align with tax law in many ways. For instance my son was not eligible to be our dependent for tax purposes because he had been working full time and earned too much. But when he returned to school at 22 he was still our dependent for FAFSA purposes. He was not living with us but was still considered part of our household for FAFSA as he is our child, and was still considered our dependent for FAFSA. </p>
<p>I think the rule you are quoting related to your own child. A child you are supporting that is not your own child or stepchild comes under this rule.
. I may be wrong, your school will be able to tell you for sure whether the cousins can be included for FAFSA purposes. What they say is what counts.</p>