Create Path Type with the Text On Selection Tool
You can create path type in Photoshop Elements 10 by first creating a selection of your image, similarly to how you create a selection with the Quick Selection tool.
Open the Editor and choose Full Photo Edit mode.
Open an image or create a new, blank Elements file.
Select the Text On Selection tool from the Tools panel, or press T or Shift+T.
On the image, paint (drag) over your desired selection.
Refine your selection by adding or subtracting from the selection in one of four ways:
Press the Shift key and drag around the additional area that you want to include in your selection.
Press the Alt (Option on the Macintosh) key and drag around the additional area that you want to subtract from your selection.
Select the Add to selection or Subtract from selection buttons in the Options bar and drag around your desired areas.
Drag the Offset slider right to expand, or left to contract, your selection.
You can specify additional options, which are common to all of the type tools; these are described in detail in the following section.
Once your selection is complete, click the Commit check mark icon to convert your selection to a path.
If you want to start over, click the Cancel (X) icon to do so.
Position your mouse over the path, and when the cursor icon changes to an I-beam (capital letter I with a crooked line crossing over), click the path and type your text.
The text wraps along the path. If you type more text than can fit on the path, an overflow icon appears.
When you’re done entering your text, click the Commit icon.
Elements creates a new type layer. You can edit any attributes, such as font and size, just as you can with point or paragraph text.