Memorization Dynamics in Knowledge Distillation for Language Models

arXiv:2601.15394v1 Announce Type: new
Abstract: Knowledge Distillation (KD) is increasingly adopted to transfer capabilities from large language models to smaller ones, offering significant improvements in efficiency and utility while often surpassing standard fine-tuning. Beyond performance, KD is also explored as a privacy-preserving mechanism to mitigate the risk of training data leakage. While training data memorization has been extensively studied in standard pre-training and fine-tuning settings, its dynamics in a knowledge distillation setup remain poorly understood. In this work, we study memorization across the KD pipeline using three large language model (LLM) families (Pythia, OLMo-2, Qwen-3) and three datasets (FineWeb, Wikitext, Nemotron-CC-v2). We find: (1) distilled models memorize significantly less training data than standard fine-tuning (reducing memorization by more than 50%); (2) some examples are inherently easier to memorize and account for a large fraction of memorization during distillation (over ~95%); (3) student memorization is predictable prior to distillation using features based on zlib entropy, KL divergence, and perplexity; and (4) while soft and hard distillation have similar overall memorization rates, hard distillation poses a greater risk: it inherits $2.7times$ more teacher-specific examples than soft distillation. Overall, we demonstrate that distillation can provide both improved generalization and reduced memorization risks compared to standard fine-tuning.