# Privileged, but Biased: How PI-Conditioned Teachers Break Self-Distillation

arXiv: https://arxiv.org/abs/2608.04794 · HTML: https://mlsanity.com/paper/2608.04794/

## Key facts

- Cited by 18 papers in the map (data through 14 Oct 2026).
- Placed in On-policy and self-distillation for LLMs, one of 12 directions in Knowledge distillation.
- Builds on 22 of its 27 references that are in the map.
- First posted on arXiv 5 Aug 2026.

## Placed in

- Knowledge distillation / [On-policy and self-distillation for LLMs](https://mlsanity.com/distill/on-policy-and-self-distillation-for-llms/)

## Builds on (most cited first, 22 of 22)

- [DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Models](https://mlsanity.com/paper/2402.03300/) (2024)
- [Evaluating Large Language Models Trained on Code](https://mlsanity.com/paper/2107.03374/) (2021)
- [Program Synthesis with Large Language Models](https://mlsanity.com/paper/2108.07732/) (2021)
- [GPQA: A Graduate-Level Google-Proof Q&A Benchmark](https://mlsanity.com/paper/2311.12022/) (2023)
- [DAPO: An Open-Source LLM Reinforcement Learning System at Scale](https://mlsanity.com/paper/2503.14476/) (2025)
- [LiveCodeBench: Holistic and Contamination Free Evaluation of Large Language Models for Code](https://mlsanity.com/paper/2403.07974/) (2024)
- [MMLU-Pro: A More Robust and Challenging Multi-Task Language Understanding Benchmark](https://mlsanity.com/paper/2406.01574/) (2024)
- [Is Your Code Generated by ChatGPT Really Correct? Rigorous Evaluation of Large Language Models for Code Generation](https://mlsanity.com/paper/2305.01210/) (2023)
- [OlympiadBench: A Challenging Benchmark for Promoting AGI with Olympiad-Level Bilingual Multimodal Scientific Problems](https://mlsanity.com/paper/2402.14008/) (2024)
- [Tulu 3: Pushing Frontiers in Open Language Model Post-Training](https://mlsanity.com/paper/2411.15124/) (2024)
- [On-Policy Distillation of Language Models: Learning from Self-Generated Mistakes](https://mlsanity.com/paper/2306.13649/) (2023)
- [Self-Distilled Reasoner: On-Policy Self-Distillation for Large Language Models](https://mlsanity.com/paper/2601.18734/) (2026)
- [Reinforcement Learning via Self-Distillation](https://mlsanity.com/paper/2601.20802/) (2026)
- [Self-Distillation Enables Continual Learning](https://mlsanity.com/paper/2601.19897/) (2026)
- [DistiLLM: Towards Streamlined Distillation for Large Language Models](https://mlsanity.com/paper/2402.03898/) (2024)
- [Beyond Benchmarks: MathArena as an Evaluation Platform for Mathematics with LLMs](https://mlsanity.com/paper/2605.00674/) (2026)
- [Self-Distilled RLVR](https://mlsanity.com/paper/2604.03128/) (2026)
- [CodeElo: Benchmarking Competition-level Code Generation of LLMs with Human-comparable Elo Ratings](https://mlsanity.com/paper/2501.01257/) (2025)
- [Why Does Self-Distillation (Sometimes) Degrade the Reasoning Capability of LLMs?](https://mlsanity.com/paper/2603.24472/) (2026)
- [Skill-SD: Skill-Conditioned Self-Distillation for Multi-turn LLM Agents](https://mlsanity.com/paper/2604.10674/) (2026)
- [Self-Distilled Agentic Reinforcement Learning](https://mlsanity.com/paper/2605.15155/) (2026)
- [OPID: On-Policy Skill Distillation for Agentic Reinforcement Learning](https://mlsanity.com/paper/2606.26790/) (2026)

## Built on by (most cited first, 18 of 18)

- [RISE: Recursive Improvement via Self-Extrapolating Policy Distillation](https://mlsanity.com/paper/2609.05295/) (2026)
- [Privileged Likelihood Is Not Automatically Value: Three Checks for Token Credit in On-Policy Self-Distillation](https://mlsanity.com/paper/2608.09263/) (2026)
- [Negative Self-Distillation: Learning to Reason by Avoiding Flaws](https://mlsanity.com/paper/2609.11699/) (2026)
- [What Does Privileged Information Add to On-Policy Self-Distillation?](https://mlsanity.com/paper/2609.20612/) (2026)
- [What Should a Self-Teacher See? Privileged Context Design for On-Policy Self-Distillation](https://mlsanity.com/paper/2609.25623/) (2026)
- [SCOPE-OPSD: Fisher-Conditioned Privileged Subspaces for On-Policy Self-Distillation](https://mlsanity.com/paper/2609.12579/) (2026)
- [On Repulsive and Attractive Teachers: Separating Correctness from Behavior in Self-Distillation](https://mlsanity.com/paper/2609.21561/) (2026)
- [VERPO: Verified Evidence Regularized Policy Optimization](https://mlsanity.com/paper/2609.06100/) (2026)
- [Teach Yourself Where to Look: On-Policy Attention Self-Distillation for Reasoning](https://mlsanity.com/paper/2609.33200/) (2026)
- [Does Learning to Predict the World Help Agents Act? Auditing World-Model Post-Training](https://mlsanity.com/paper/2609.33335/) (2026)
- [ComputerSD: Online Self-Distillation from Real-Time Feedback for Computer-Use Agents](https://mlsanity.com/paper/2609.40253/) (2026)
- [PG-SFT: Balancing Capability Acquisition and Retention in Offline Agent Fine-Tuning](https://mlsanity.com/paper/2610.00949/) (2026)
- [E2-OPSD: Taming Entropy Overshoot in On-Policy Self-Distillation](https://mlsanity.com/paper/2610.05048/) (2026)
- [Hindsight Structured Advice Distillation: Steering Executor Agents with Advisors Trained on Their Failures and Task Characteristics](https://mlsanity.com/paper/2610.13000/) (2026)
- [A Privileged Teacher That Only Scores Cannot Search: Critique-Conditioned On-Policy Self-Distillation for Reasoning](https://mlsanity.com/paper/2610.13744/) (2026)
- [Self-Distillation with Verbal Regularization](https://mlsanity.com/paper/2610.16354/) (2026)
- [Does self-distillation improve reasoning?](https://mlsanity.com/paper/2610.18613/) (2026)
- [More Methods, Better Agents? A Reality Check on Self-Distillation in Agentic Reinforcement Learning](https://mlsanity.com/paper/2610.19789/) (2026)

## Abstract (arXiv)

Self-distillation (SD) has emerged as a compute-efficient alternative to reinforcement learning with verifiable rewards: a self-teacher, conditioned on privileged information (PI) about the answer such as a reference solution, supplies dense per-token supervision to a student that never sees it. Reported gains, however, come almost exclusively from narrow, low-difficulty settings, leaving open a basic question: as a lone objective, with no reward term, does SD teach anything? We reproduce SDPO's reported gains in its easy setting, then apply the identical setup to difficult tasks and find that it does not. Across question answering, mathematics, coding, and multi-turn agentic tool use, across reasoning modes, model sizes, and forms of PI, and under both the SDPO and OPSD recipes, the per-token loss falls steadily while validation accuracy does not improve and typically degrades. We explain this failure through a single causal chain from the loss to the model it produces. The chain begins with PI bias: having seen one particular reference solution, the teacher's per-token target is pulled toward that trajectory rather than toward correctness in general, an effect we quantify with a PI Bias Score. Trained to match this target everywhere, the student's objective becomes nearly blind to whether a rollout is correct, and the loss it assigns falls mostly on low-information tokens like stopwords, punctuation, uncertainty markers, rather than those that determine the answer; within correct rollouts the exploratory tokens incur the highest divergence, so it penalizes the hesitation that reasoning requires. The result is a flatter, less decisive student that is no better at reasoning: as a lone objective, SD optimizes a signal decoupled from task success.