Should I get a different car?

I own (fully paid) a 2001 Toyota Camry Le. At 106,000+ miles, it is recommended that I get my timing belt replaced, which I was told could run me to about $1000. Also, my tires are bald and need to be replaced (about $500). I would like to get a used car, like a manual Honda Civic (about $16-17,000), so it would last me and save me gas. However, I am a college student and will be taking out loans within the next year. Should I keep my current car and get it repaired, or should I buy a newer, smaller car?