if the oil cooler is leaking, does this need to be replaced asap or can it be monitored until it gets worse? Does the 87 model have power steering?

 

It depends how bad it is. Their are 3 o-ring type seals that go into the block that are located on the inner side of the cooler.
The repair is not that bad to do, Just alittle messy.
No your vehicle does not have power steering, sorry.

 

Much more common than the oil cooler leaking is the oil thermostat o ring on the top backside of the motor. A leak there will run down the oil cooler, and mimic the oil cooler leaking. It is about a $4 part, and not horribly bad to replace.