How do I decide which loans I need to accept?
Your goal should be to accept the loans with the most favorable terms and conditions. These are usually your federal student loans.
I've heard that some schools offer interest free tuition payment plans. Is this true?
Yes, it is. This type of loan can be very beneficial, because it allows the borrower to reduce the amount they will need to take out in loans. You should ask your financial aid office if this plan is available to you.