Probably a bad valve. I understand your predicament, I was a poor student also.
It might be time to unplug the fuel injector for the bad cylinder and run on 4 cyl just to keep any unburned gasoline from washing the rings.
Sounds like a good summer project! There are a bunch of pick&pulls in CT, so make a date when it gets warmer, find another 1996 and take off the head for future use. Good practice for when you do it to your own car.
Klaus
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Always willing to listen, just not able to take direction.
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