Physician Assistant Higher Education Modernization Act of 2017 This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to assist qualified individuals in receiving the education and training needed to become a physician assistant. Graduate students enrolled in physician assistant education programs are eligible for: (1) increased Unsubsidized Stafford Loan limits, and (2) loan forgiveness programs for those who serve in areas of national need upon graduation. The Department of Education (ED) must: provide Historically Black Colleges and Universities and Predominantly Black Institutions with grants to fund physician assistant studies at the masters level, prioritize the awarding of grants for physician assistant education programs at the postbaccalaureate level that will benefit Hispanics and low-income students, and provide grants to prepare certified physician assistants to become faculty members in accredited graduate-level physician assistant education programs. In addition, ED is authorized to award grants to rural-serving institutions of higher education for: (1) increasing enrollment and graduation rates of students from rural areas in postbaccalaureate physician assistant education programs, and (2) training physician assistants in rural areas through the creation and expansion of physician assistant education programs in rural areas. ED may also award grants to physician assistant education programs for enhancing the programs and improving patient safety by supporting the purchase of new infrastructure and technology.