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Look on Ebay for a new heater core for under $50, make sure it has the O rings(2) included. Just a 1 hour job, plus additional time to get the carpets cleaned...
I do not understand the oil light coming on unless the oil pump broke and there is no pressure.
Yes, do a compression check. That will tell you if the head gasket is blown.
"If" the oil pump broke, prepare to remove the oil pan (awful DIY job) and clean out the sump along with replacing the O rings and clean out the filter screen in the oil pick up tube.
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Keeping it running is better than buying new
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