PHF: Privileged Hidden Flow for On-Policy Self-Distillation

On-policy self-distillation (OPSD) scores student-generated prefixes with a solution-conditioned self-teacher, yet transfers supervision only through next-token probabilities. We ask whether the aligned final-layer discrepancy offers a useful second channel, and how to test that channel without confusing its geometry with auxiliary strength. SCOPE-OPSD projects the privileged teacher-student residual onto a frozen rank-64 factor estimated from residual covariance and language-model-head Fisher sensitivity. It reuses the forwards already required by OPSD and adds neither rollouts nor inference-time modules. A matched Random control preserves the structured factor's rank and nonzero spectrum and uses per-arm gradient-RMS calibration, isolating the effect of the data-dependent orientation. Across the complete 25/50/75/100-step trajectories for Qwen3-1.7B, 4B, and 8B, Structured is never below Pure OPSD, with strict gains in 11 of the 12 model-checkpoint combinations and an exact tie at 4B step 25. Structured also exceeds matched Random in 10 of the 12 combinations. At step 75 on Qwen3-1.7B, Structured exceeds matched Random by 1.39 Macro Avg@12 points in each of two independent training reruns. A cross-fitted diagnostic also shows 4.40 times greater held-out privileged-gap capture than the matched random orientation. The results support a compact, Fisher-conditioned privileged subspace for short-budget OPSD.

On-policy self-distillation (OPSD) uses a privileged teacher to supervise a reasoning model on prefixes sampled from its own rollouts. Yet each rollout also reveals how the student's response unfolds and whether it succeeds, student-specific hindsight that standard OPSD does not use to form the teacher. We introduce Privileged Adaptation from Student Trajectories (PAST), which treats each completed student trajectory as additional privileged information for the OPSD teacher while leaving the student's distillation prefixes unchanged. PAST preserves the student's next-token distribution on correct trajectories and uses failed trajectories to adapt the teacher toward verified success under student-proximity regularization. We characterize what such a trajectory-conditioned teacher can transfer to a prefix-only student. Forward-KL distillation projects the teacher distributions to their conditional arithmetic mean given the prefix. This projection separates trajectory-specific variation that remains privileged from the mean policy shift available to the student. For correct trajectories, the unclipped population objective also has the frozen student as an ideal distributional fixed point. Across three mathematical reasoning benchmarks, PAST improves the Avg@12 macro average over Vanilla OPSD by 5.6 percentage points. A $2\times2$ factorial study shows gains from both complete-trajectory access and teacher adaptation, while trajectory removal and shuffling confirm that the adapted teacher uses the matching hindsight context.

On-policy (self) distillation (OPSD) is increasingly adopted for language-model post-training. It strengthens the teacher with privileged information but can induce a privilege illusion: the student learns privilege-dependent behavior it cannot reproduce from its inference-time context, yet behaves as if the training-time privileged information remained available, ultimately degrading performance. In this paper, we identify information asymmetry between the privileged teacher and the student at inference as the root cause of this failure in OPSD. To resolve this asymmetry, we propose Dual-Anchored Policy Distillation (DAPD), a unified framework with two levels of anchoring. Dual-Path Anchoring (DPA) introduces a self-conditioned bridge and aligns reference and rollout behavior along two matched-information paths, preventing privilege-dependent behavior from being transferred to the inference-time student. Dual-Source Anchoring (DSA) applies these paths in both reference-to-rollout and rollout-to-reference directions, reducing reliance on privileged reference guidance while preserving correctness supervision. Extensive experiments show that DAPD significantly alleviates privilege illusion, outperforming OPSD on Qwen3-4B by +2.00 points on average across tasks. Notably, its gains persist across scales, reaching +2.69 at 4B and +2.78 at 32B.