It is very difficult to draw path diagrams and SEM models in Microsoft Word / Powerpoint. Graphviz is a free program that worth trying out, together with the sem package in R (http://cran.r-project.org/web/packages/sem/index.html), drawing path diagrams with loading became a much easier tasks...
Download Graphviz
A guide on the syntax of Graphviz, if you are not using sem packages and have to code the path diagram yourself: How To Use Graphviz for SEM Models and Path Diagrams
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