Should I switch from oil to corn for home heating?

Okay, so I have this ancient steam boiler/furnace (c. 1930's, originally coal, converted c. 1950's to oil) that needs to be replaced (due to cracked chamber). I have a 3500 sq. foot victorian row house. Little to no insulation. My heating cost for four months at about 300 gallons per month was $4500 this season (2007-2008). I can get a new oil furnace at no cost to me (fuel istance program), with probably another $4500 fuel bill (although oil will cost more, my efficiency will increase), or try to get a loan for about a $8,000 corn pellet boiler system that will cost about $1500 for the season in fuel. This is a big investment either way (and there's no guarantee I'll get the loan, because I'm low income). Any suggestions?