KD-LoRA: A Hybrid Approach to Efficient Fine-Tuning with LoRA and Knowledge Distillation

Large language models (LLMs) have demonstrated remarkable performance across various downstream tasks. However, the high computational and memory requirements of LLMs are a major bottleneck. To address this, parameter-efficient fine-tuning (PEFT) methods such as low-rank adaptation (LoRA) have been proposed to reduce computational costs while ensuring minimal loss in performance. Additionally, knowledge distillation (KD) has been a popular choice for obtaining compact student models from teacher models. In this work, we present KD-LoRA, a novel fine-tuning method that combines LoRA with KD. Our results demonstrate that KD-LoRA achieves performance comparable to full fine-tuning (FFT) and LoRA while significantly reducing resource requirements. Specifically, KD-LoRA retains 98% of LoRA’s performance on the GLUE benchmark, while being 40% more compact. Additionally, KD-LoRA reduces GPU memory usage by 30% compared to LoRA, while decreasing inference time by 30% compared to both FFT and LoRA. We evaluate KD-LoRA across three encoder-only models: BERT, RoBERTa, and DeBERTaV3. Code is available at https://github.com/rambodazimi/KD-LoRA.