Does the money lending between us need to be reported in our tax
Will he be taxed more because of lending the money to me?
Will I be taxed more because of borrowing the money from him?
How shall we report it so as to minimize our taxes?
What is reported on your tax returns is the income. A loan is not an income, so nothing gets reported. However, when you repay the loan, assuming it has interest, the lender has income: the interest.
Interest income is reported on schedule B of the regular (1040/1040A) tax return (or, in the case of non-resident for tax purposes, on line 9 of 1040NR). It is taxed as ordinary income, and since you're both foreigners - the lender should look into the treaty provisions that might be relevant. Generally it is not exempt from taxable income based on treaty exemptions for students (which is only for earned income), but there might be other rules in the treaty regarding interest income.
If there's no (fair market or higher) interest, then there's "assumed" interest at the IRS mandated rates, which is considered a gift. If it amounts to more than the yearly gift exemption, the lender may be liable for gift tax (depending on the lender's and your status, and again - see treaties).
"Loan" without an obligation to repay and without actual repaying will also be considered a gift for tax purposes.
If the lender has no intentions of having the loan repaid (i.e.: making a gift), it will be better to pay your tuition bills instead of actually giving you the money: tuition is exempt from gift tax.
Talk to a CPA/EA licensed in your state for a proper tax advice on this issue.