1996 Subaru Outback timing belt damage

Engine Mechanical problem
1996 Subaru Outback 4 cyl All Wheel Drive Automatic

My 1996 Outback died while my wife was driving it - it just stopped running and shut off. We had it towed to a Subaru dealer who said the tiiming belt broke. Additionally, he said that this usually results in a bent valve. Is this true? If there is a chance that only the timing belt is broken, I would have it fixed. The mechanic said, however, that it is impossible to rule out engine damage without replacing the timing belt. Is all of this correct? It's not worth fixing if there is engine damage.