Not in my experience.  Generally they are going to correct the problem
with factory parts which may be more expensive than after market, but
the quality in in many instances equal or better too.

When I have brakes done at volvo they use factory pads, which may not
last quite as long as the much harder after market pads.  But they are
generally quieter and rotor wear seems lower.

Think of $1,500 as money that is sunk, gone.  As with any other used
car the repairs are what it costs to have transportation.  You could go
pay money for another used car and be faced with yet other repair
expenses.  My opinion is that you will be money ahead by paying what it
takes to keep this inexpensive car running for as long as possible.

Some dealers won't work n older cars.

You could try checking with members of the Illinois chapter of the Volvo
Club of America.

Chapter links can be seen here:

http://www.vcoa.org/theclub/chapters.php#illinois

Assuming someone other than the owner is going to do the work, why not
the dealer?  In my experience they charge about as much as the good
independent mechanics because they are using volvo parts.

Don't forget what he is paying for is transportation, and it really
doesn't matter whether the car is 20 years old or 5 years old.  A car
is not an investment, but pre-paid transportation expenses.  If he can
keep a 20 year old car going by spending $1,000 he is far better off
financially then spending $40k for a new one.  Said another way the
fewer times you repeat the process of shelling out the price of a new
car the lower your total cost of car ownership will be.

Ask any financial advisor - you are almost always better off keeping
the old car and repairing it.   It isn't as much fun as a new car
tho.....