Stephan was born in Beirut, Lebanon. She is fluent in Arabic, French and English. She completed her French Baccalaureate degree at the French Protestant College in Lebanon in 1978. She then left Lebanon to escape the civil war. She received her Bachelor's degree in Cinema Studies from La Trobe University in Melbourne, Australia in 1982 and her Master's degree in Cinema studies from Paris VIII University, France, in 1986. Stephan lived in France for 20 years.