Lyric discussion by hankpiece 

Cover art for Stephanie Says lyrics by Velvet Underground, The

I think that Stephanie is about a girl who is unable to get really close with people. People meet her and are friends with her but eventually they move on (she's the door but can't be the room) and she grows resentful while they regard her as cold-hearted (they call her Alaska.) But her isolation is self-imposed and is a product of her coldness. (It's all in her mind.)

So she questions why she lives in this isolation. But people wonder about her "Does she like living so distantly?" (Is it good or bad?) The answer is no, it's a cold and lonely existence. "It's so cold in Alaska."