Jaclyn

I was terminated from my job in July, however, I was told I am eligible for re hire as long as my 401k loans were paid back. I have more money in my 401k than the loans that I borrowed. I do not owe the employer the money, it was MY money that I was contributing to the plan, that I borrowed from. Since I am unable to pay back the loan, I have to let it roll over as earned income in my taxes. Why am i being told i have to pay back MY money before i am eligible to re apply and be considered for employment again with the same company. I could understand if I owed the company money, but it was my money. Is this legal? (And I know, why fire me if you're just going to tell me "you're eligible for rehire..")