Apple updated the MacBook Air for 2017, but it was a minor processor upgrade, not even to the newer Intel processors. Given the age of the MacBook air and the power that you can get for $300 more, it makes sense to buy the MacBook Pro instead of the MacBook Air in 2017.
This isn't a small price difference to most users, but if you plan to keep your new MacBook for three or four years, you will definitely end up with a better value over the long run by paying for the 13-inch MacBook Pro.
You can use student discounts and look for MacBook Pro deals that will help make this a better value overall, and one that will get more support and updates in the long run.
One caveat is that we could see a budget 13-inch MacBook announced in June. If that sounds like what you want instead of a MacBook Pro, try to wait and see what is announced.