I too, doubt that a new belt would have messed up just cyl #1. Less than 5psi is as far down as the tester will register. Sounds like a valve seat went south. If it were the rings, lift up on the oil dip stick and watch the blowby come out. I don't suspect the rings, even at 240K miles. You could get another opinion, but you may be better off pleading with the service manager about your lack of funds.
Since there was no noise coming from the engine, it is possible that the repair could be relatively minor (verses new pistons and valves and bearings, etc.) Does the shop have a free loaner program? A junker to get you to work and back?
Ask lots of questions and let the tears fly! Most men cringe at wet eyes!
Klaus
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98 V70Rawd(101Kmi), 95 854T(85K mi), 75 164E(173K mi)
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