GRADE: Generalizable Reasoning-Aware Dialogue Evaluation for AI Tutors

Evaluating AI tutor responses requires more than factual correctness: tutors must identify mistakes, locate errors, provide guidance, and offer actionable next steps. We present GRADE, a systematic study of open-source models for pedagogical ability assessment in student-tutor dialogues. Building on the BEA 2025 TutorMind setting, we evaluate 120 configurations across five language models, zero-shot inference, LoRA fine-tuning, synthetic augmentation, CoT+Reasoning, and single-task versus multitask formulations. Gemma3-12B performs best for single-task evaluation, while Gemma3-27B in 8-bit precision is more reliable for multitask prediction. We find that augmentation helps models that struggle with the original data, verification adds limited gains despite higher cost, and CoT+Reasoning is more useful for synthetic data generation than direct classification. We further show that LoRA fine-tuning on structured classification objectives interferes with instruction-following behavior under thinking mode, redirecting generation away from the required evaluation format. Carbon analysis shows that model choice and reasoning mode substantially affect emissions. Overall, GRADE shows that carefully selected open-source LoRA pipelines can match or surpass proprietary and ensemble-based systems on key pedagogical dimensions, with code and data available at https://github.com/pvbgeek/GRADE.