More likely to be the bearings going on it and allowing the drum to rub against the rubber seal. If it is that then yes it will be an expensive job. Complete strip down of the machine to access the seal & bearings. Without seeing the machine & listening to the noise all we can do is guess. Best for you to get someone out to see it and give you a quote. Then decide what to do. Repair or replace.
Lincoln Appliance NZ, February 2014