Lune

KDD2026Top-tier venue

Efficient and Differentially Private Federated LLM Fine-Tuning on Heterogeneous Clients

Nan Yan, Yuqing Li, Xiong Wang, Jing Chen, Wei Wang, Kun He, Ruiying Du, Shuhua Li

2026Year

Abstract

Federated low-rank adaptation (FedLoRA) allows multiple clients to collaboratively fine-tune large language models (LLMs) on downstream tasks without exposing their private data. To mitigate privacy leakage during aggregation, differential privacy (DP) is widely used to clip and perturb local model updates with noise, yet it can compromise model accuracy due to the inherent privacy-utility trade-off. The performance degradation becomes worse under the FedLoRA setting with the amplified DP noise impact and client heterogeneity in both model structure and data distribution. In this work, we propose iP-FedLoRA, a privacy-preserving federated fine-tuning framework for heterogeneous clients that strikes a good privacy-utility balance. Specifically, to fully utilize clients' heterogeneous resources, we customize LoRA modules based on their available resources. iP-FedLoRA employs matrix-wise differentially private local fine-tuning with sensitivity-aware noise allocation and rank-compensated LoRA regularization, which effectively alleviates noise impact of low-rank modules and enhances training efficiency. By leveraging noise-resilient knowledge distillation, iP-FedLoRA facilitates heterogeneous LoRA aggregation that selectively prioritizes high-confidence knowledge to filter DP-induced noise, thereby achieving robust knowledge transfer. Through rigorous privacy analysis and extensive experiments, we show that iP-FedLoRA provides privacy guarantees, improves model accuracy by up to 3.8%, and expedites training by 1.37-2.23×.

Ask about this paper

Ask your agent about it.

Lune has read the top-tier papers around this one, so every answer names the papers it rests on.

Questions to start from

Your agent calls

Lunesearch_papers

Ask in Lune

Free to start. No credit card required.

lune papers get 00534f9d-ea61-40c8-8fd6-7c27a126bb7b

Related papers

Dusk over the sea between two cliffs drawn in fine vertical lines