Born in New York City where she lives in Manhattan. She was educated at Hunter College of the City University of New York abd has worked variously as a waitress, stagehand, secretary, and teacher. As a political activist working for lesbian and gay rights she was a co-founder of ACT UP and of the Lesbian Avengers.

Schulman's writings eschew the realist tradition that many lesbian novelist have embraced in favour of mainly postmodern, experimental style of writing. Satirical and witty, her work refuses linear narratives, relying instead on an episodic structure. She is one of the founders of the Lesbian Avengers, a direct-action lesbian rights organization.

She has been a prolific contributor to many magazines, newspapers, and journals both mainstream and specifically lesbian and gay ones. Shulman has also written a number of plays. She is probably one of the best-known contemporary lesbin experimental writers. She has held a Fulbright fellowship (1984).