You are definitely going shopping for a fork. Yours is scrap.
While you could install the new fork yourself, an LBS may only charge $20-$25 to do it for you. Getting the crown race off the old fork and on the new one without the "proper" tools is tricky, but can be done. Depends how quickly you want the job done and how much cash you have left over after your trip to Fork City.
Then again, depending on the value of the bike (I noticed the Schwinn brand) it may be cheaper to just replace the whole bike.