Photoshop Elements :: Building Text Box On A Layer?

I want to publish a book. It is mostly text, 40,000 words plus with over 350 photos. I am using Elements 11 on a Windows 7 machine.  I have developed a template displaying 2 facing pages. I want to create a different layer for each photo.  I also want to create different layers each with its own text box.  I want to fill with each box with Microsoft Word text using a cut and paste technique. 

I need to know how to create a text box on a layer that I can fill with text.  When I select a layer and click on the text tool I create a text layer. Then I click and drag a box which looks good, but when I click on the green check to apply the box to the layer the entire box disappears and I’m back to where I started. how I can create a text box on a layer that I can fill with text.