Hard-label classification is usually trained with smooth surrogate losses such as softmax cross-entropy. We isolate a mechanism by which this mismatch between smooth surrogate and discrete labels produces power-law learning curves for a one-layer softmax student trained by online SGD on Gaussian inputs with argmax teacher labels. In the thermodynamic limit, the dynamics reduce to a growing student-teacher alignment and a residual student variance sustained by SGD noise. At late times, only shrinking layers of examples around teacher decision boundaries remain active. This yields an $α^{-1/3}$ law in training time $α$ not only for the test loss but also for the generalization error, one minus test accuracy. The error law is an online-noise effect. The loss law persists without gradient noise. Learning-rate annealing separates the two exponents, improving the error exponent from 1/3 toward 1/2 while slowing the loss. Simulations support the predictions. Correlated Gaussian inputs and whitened pretrained features change transients, not the late-time decay. Experiments with deep neural networks can show compatible error scaling. The mechanism is asymptotic and complementary to spectral explanations and data-statistics explanations of neural scaling laws.

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