A 17mi would take me an average of an hour I would guess, results may vary with the rider of course, traffic, etc. Headwinds would make that an hour and a half. Its definately doable, and you will be a beast on the bike in about a month. If you can, I would try to get 105 or Tiagra level components... I think they are much more comfortable for shifting (most agree) and you will get a longer life and smoother performance out of them as well.
Since you are in school, I am guessing you are roughly my age (21) so no need for adjustable bars, especially with the distance you will be covering... I would definately opt for a drop-bar road bike. Its much better riding in the wind on drop bars, and less fatiguing over distance with all the hand positions you can use. As for potholes, try to avoid them.
Something else to consider is a Cyclocross or CX bike... its a road bike with mountain bike cantilever brakes, larger more aggressive tires on a roadbike rim, and drop bars like a roadbike, sometimes with a mix of roadbike and mountain bike componentry. They are good for commuting with the slightly larger tires and better brakes... would probably handle potholes better.
Anyways good luck and have fun with the ride!