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This research addresses a critical flaw in standard knowledge distillation where unreliable teacher models degrade student performance due to hallucinations. The proposed CaRE-KD framework introduces confidence gating and epistemic rejection mechanisms to adaptively optimize training based on uncertainty levels, resulting in measurable gains across instruction following, coding, and mathematical reasoning benchmarks. By preventing the propagation of noisy supervision, this method offers a more robust approach for scaling efficient LLMs without sacrificing calibration or accuracy.
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Distilling What Matters: Confidence-Aware Selective Distillation for Large Language Models

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arXiv:2609.36734v1 Announce Type: new Abstract: Knowledge Distillation (KD) trains a smaller-capacity student model to imitate a larger-capacity teacher model by matching output distributions, implicitly assuming the teacher to be a reliable oracle. In large language models (LLMs), this assumption often fails: teacher predictions can exhibit high entropy and hallucinations, causing standard KD to degrade well-calibrated student priors. We propose CaRE-KD, a confidence-gated distillation framework that replaces static objectives with uncertainty-adaptive optimization. CaRE-KD has two components: a token-level loss (CaRE-Divergence) that adaptively switches between Forward and Reverse KL divergence based on teacher--student confidence, and a batch-level epistemic rejection mechanism (Revival) that suppresses updates when the teacher is more uncertain than the student. We provide a gradient-level analysis showing how this dual-granularity design induces a conditional calibration mechanism that prior static divergences cannot reproduce. Empirically, across eight teacher--student pairs and eleven benchmarks spanning instruction following, chat alignment, code generation, and mathematical reasoning, CaRE-KD delivers consistent gains over strong baselines (Skewed-KL, $\alpha$--$\beta$ divergence). Highlights include up to $+3.2$ average ROUGE-L on instruction-following tasks, $+2.1$ pass@1 on MBPP, $+1.7$ accuracy on GSM8k, and $+1.8$ accuracy on CollegeMath over the strongest baseline, with consistent gains in LLM-as-a-judge factuality (up to $+2.5$ per task over Skewed-RKL). Revival further acts as a principled, loss-agnostic plug-in that systematically strengthens existing distillation objectives by filtering epistemically unreliable teacher supervision.

Abstract:Knowledge Distillation (KD) trains a smaller-capacity student model to imitate a larger-capacity teacher model by matching output distributions, implicitly assuming the teacher to be a reliable oracle. In large language models (LLMs), this assumption often fails: teacher predictions can exhibit high entropy and hallucinations, causing standard KD to degrade well-calibrated student priors. We propose CaRE-KD, a confidence-gated distillation framework that replaces static objectives with uncertainty-adaptive optimization. CaRE-KD has two components: a token-level loss (CaRE-Divergence) that adaptively switches between Forward and Reverse KL divergence based on teacher--student confidence, and a batch-level epistemic rejection mechanism (Revival) that suppresses updates when the teacher is more uncertain than the student. We provide a gradient-level analysis showing how this dual-granularity design induces a conditional calibration mechanism that prior static divergences cannot reproduce. Empirically, across eight teacher--student pairs and eleven benchmarks spanning instruction following, chat alignment, code generation, and mathematical reasoning, CaRE-KD delivers consistent gains over strong baselines (Skewed-KL, $\alpha$--$\beta$ divergence). Highlights include up to $+3.2$ average ROUGE-L on instruction-following tasks, $+2.1$ pass@1 on MBPP, $+1.7$ accuracy on GSM8k, and $+1.8$ accuracy on CollegeMath over the strongest baseline, with consistent gains in LLM-as-a-judge factuality (up to $+2.5$ per task over Skewed-RKL). Revival further acts as a principled, loss-agnostic plug-in that systematically strengthens existing distillation objectives by filtering epistemically unreliable teacher supervision.

Computation and Language (cs.CL)

arXiv:2609.36734 [cs.CL]

(or arXiv:2609.36734v1 [cs.CL] for this version)

https://doi.org/10.48550/arXiv.2609.36734 Focus to learn more arXiv-issued DOI via DataCite (pending registration)

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