Question:How does this affect my UMN Google Apps account?
Answer: It does not change the privacy agreement entered into by the University and Minnesota and Google.
From UMN Google Support:
There is a difference between University of Minnesota Google Apps accounts and personal Google/Gmail.com accounts. They are totally separate from each other, and fall under separate and different contractual agreements, as well as different terms of service. Institutions that use Google Apps for their email, calendar and the other core applications, have individual contracts with Google that define how data is handled and stored.